First of all, I found a seller who was not insulted by my offer and was eventually willing to significantly drop the price. At the price I’m paying there is a “margin of safety” that makes me comfortable.
Secondly, I am putting 20% down and using a 15-year, fixed-rate loan. I can easily afford the payment and the house will be paid off before my 50th birthday.
Lastly, I plan to own the house for a long time. I’m not worried about prices going down further, as I expect they will. By the time I get around to selling, I have faith Uncle Sam will have taken care of the price for me.