Thanks arielitas_mom! yes,my plan is to make a nice, big, luxurious tiled shower along the same wall that the corner shower is now. Probably about 39" w x 6 feet long (unless that's TOO long...). I do feel like this is a compromise, since a 3BR/2BA (and lts face it, most people will use it as 2BR/2BA/office) feels like it's step down, as far as the target market, from the 3BR/3BA/office we'd planned when we bought it. But it's good to hear some positive feedback from you folks about the compromise, because it really would stretch us too far to do the addition. Thank you! So what do you all think about the fact that there's no proper dining room? The DR area is really more of a dining "nook" and there's no place to put a really big dining table. ?????

Thanks everyone, you've given me a lot to think about. Now I'm leaning back towards the 2 br w/garage. The 2 br w/garages in this area seem to be in better areas. I am also looking at duplexes which seem to be over my price range, but the benefit of no assessments really pays off. The assessments around here go from anywhere from $150-300. I was also considering dividing a master bedroom like some of you have suggested..there are some websites which sell room dividers so that could be an option.

kkhaven, do you have other furniture in the room(s)? I ask because 10' x 11.5' is plenty of room for a full size bed or a queen size bed. Maybe you should post your guest rooms here to see what furniture configuration would work best for each room. Has to be much less expensive than converting a 3 bedroom to a 2 bedroom. BTW, I agree with the consensus here - changing to a two bedroom from a 3 bedroom would drop your homes value tremendously.

It depends also upon what that particular property is worth to you. I've seen people let $5000 keep them from purchasing a home they really wanted, and end up paying the price it could have been purchased for a few months later, for a house they liked less. Market values fluctuate. There are the comps of what a house is worth on the market at this moment, and what it is worth to you. If you pay $5000 over market value today, but get the house, maybe that purchase price is the market value in six months. Does that matter in the larger picture for what is often a30 year mortgage, and the "value" bouncing up and down? Sure, you don't want to pay more than you have to. But increasing the odds of actually being able to purchase the house you want has a value, too. How badly do you want this particular property? If low-balling increases the odds that someone else will purchase the property instead, how much does that matter to you? That is a question only you can answer. Offering an amount closer to what you said you expect to have to pay, increases the odds of your being able to purchase the property. Not all offers must be made with negotiating in mind. We offered less than market for our house, but that was what we were willing to pay with consideration to the work needed. The owner wanted more, but it was easy to decline increasing our offer, because we had already established what we were willing to pay. Don't forget that most properties get appraised, and that can affect how much price wiggling is done during the negotiations for inspection repairs, closing costs, etc. Even if they accept your lower offer, if the house appraises much higher, they will then probably not going to concede additional money. If your offer is above the appraisal, you can renegotiate (per contract) and are more likely to get a roof replacement, or whatever. In the end, it could be a wash when it comes to the final price.