My dears, I am here to tell you: YOU ARE DOING THE RIGHT THING. I know it's discouraging. But you have such amazing courage to even decide to make such a life change as buying a home -- and in the midst of this crazy market with low interest rates, super low low inventory, and coming up against all cash investors. And you didn't even torch the house after you lost it in that multiple offer situation!! Props to you, my friend!
All kidding aside, STAY POSITIVE. It will take some time. It will take patience, and strength and flexibility, and giving up on some of the things you want. It will break your ego. You might have to play every advantage you have -- HELL, you might even have to listen to your real estate agent! ;)
But hang in there. It's a part of the process. And after all that, you will have had an extensive education on the current real estate market, and have probably grown from the process having been tested so!
I know it's hard. I know it's discouraging to put in an offer the day after it comes out on the market and hear there were 32 other offers, and the seller accepted an all cash offer over asking that will close in 7 days to an investor who's not even going to live there.
But smile. :) Life is short, and there's so much to be happy about. The economy is improving, remember? You have $ to buy a house! You are making decisions about how you want to live your life!
So in closing, I send you love and peace, as you will need both to make it through. But hang in there -- your strength is inspiring. :)