I am puzzled why you are posted this question. You have a Realtor that knows your situation, knows the local market, and knows the subject property. They are in a much better position to offer advice than any of us.
The one piece of advice I will give you is to sit down and anticipate what your lives might be like in a few years and try to visualize how this home meets your family's needs. For example, as your children grow, is the yard large enough? Where can they learn to ride a bike?
Or as you get older, you may love the view but how do you like climbing 29 steps to the main floor?
Also, you could ask about the city's future development plans... A LOCAL Realtor can best advise you.
David Van Noy Jr.
You will definately want to have your buyers agent sit down and discuss the answers to your questions with you before you make your offer. A Buyers Agent represents your best interest in the transaction and should do all they can to help you with the advantages and disadvantages to a property you are interested in.