DOHE: The Database of Human Errors

Summary
There was this great property that we had in our clutches. It was the first home we every put a bid on. It was at the very tip of our affordable range of home prices. There was this wierd clause in the contract that claimed that the earnest money (which was $10k) would be forfeited to the owner if we fail to close on the contract. According to the "experts", this was a huge warning flag. My wife and I got scared and we retracted our bid.

Long story short, the home we ended up in has appreciated $5k in the 1.5 yrs that we've been here whereas that house has appreciated $50k. :(
Root Cause
Ultimately, the negative feelings we have about our first home purchase stems from the fact that we went with a realtor who was a friend of a friend. Despite her inexperience, we went along with it anyway.
Prevention
Don't be afraid to hurt people's feelings, particularly when it comes to purchasing a home. There are definitely times when there's no point in trying to please others; especially when you, yourself, are the customer that has to live with the consequences.