Buyers seem to be hesitant in making a commitment to one house over the other–taking their time to see homes and less eager to make an offer.

Perhaps this is an effect of the last six months of REOs and short sales. Once you get used to playing the field and submitting muliple offers on multiple properties, sometimes it's hard to see a "normal" sale and commit to pursuing just that one home. Which home to buy ordinarily is a multi-faceted decision of economics, suitability and emotion. But, when you deal with foreclosures it's like gambling. You learn to not get attached to any one home as the best offer gets it.

A good offer on a "normal" sale is still what I recommend in terms of making that commitment. Having the option to negotiate with the seller is a great benefit! Terms can be worked out in a matter of days or hours, rather than weeks and months!