Now might not be the best time to do this -- the prices of houses are very, very high, and there is some indication that it might be a bubble set to pop. If you buy a house the standard way -- mortgage, interest rates -- it usually evens out, because part of the reason house prices are so high is that interest rates are so low. People only really care about their monthly payments.
If interest rates are out of the equation, you're paying more than the house is "worth." (Quotes 'cause that's so imprecise. The "worth" of the house has a lot to do with what comparable houses are selling for. We have a really weird house that doesn't compare very well to existing houses. The appraiser decided it was worth what we paid for it. I asked how that was determined, and it was basically because we were willing to pay that much for it and the appraiser didn't notice anything that would greatly increase or decrease the value. So it's a bit circular -- it's worth what you're willing to pay.)
OK all of that is conjecture and not my area of expertise, but that's the impressions I got after my big house-hunting and -buying experience last year.
I will try to decipher your second paragraph when I get a moment's peace here at work, but right now I'm too frazzled.
But I'm interested in this "bubble" idea. For the past seven years, all the time that I've lived in New York, people have been saying, "you should wait another year or two, because the bottom is going to drop out of the market anyday now." Yeah, right. Prices have never gone down except for about six months after the WTC disaster, and that was only downtown in that one little area.
So I'm not sure whether that is just a NYC thing, or if it's just a "the sky is falling" kind of thing that people say because they are just naturally nervous.