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Answers:
Our home was actually our third pick when we were house hunting… the first two homes went under contract a matter of a few hours before our realtor placed the bid. The downfall to our house is that is has a tiny yard, and we are on a busy street. The first two were much smaller and needed more drastic work (rather than just cosmetic work needed in the home we bought), but they had big yards and were in a more rural setting. In hindsight… we are SOOO glad we got this house! We would have outgrown the first two in no time, and it would have crippled us financially to make all the majors repairs needed on those homes.
The point of the story being… go with your gut! If you have the slightest bit of hesitation… DON’T DO IT! Another house WILL come along, and it will probably be a much better for for your situation in the long run.
Good Luck!

