would you buy this home?

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I wouldn't if you're worried about having to resell it. Just the fact that you're not feeling confident makes me think this isn't the right home for you. I think you'll still find something with all the unique and energy efficient features you are searching for. I think you're right about the upside down layout being a problem for selling, but more likely it hasn't sold for aesthetic reasons (interior design) which I don't think matter. Most likely, it hasn't sold because of the stat of our economy. Not many people are in a position to buy a house.

I wouldn't buy a home with a wood stove because of my asthma. I would be afraid of the danger of my young kids near a ravine and semi-busy street with no sidewalk. But then again, I couldn't even buy a house if the actual price was only $75,000! so I can't imagine what that much off the price means, value-wise.

For me there would be other things to think about, are you homeschooling or sending the kids to school if so where and what differences does the 2 houses (or the other one out there you haven't found yet) have to offer in terms of distance, quality... same with your or your parterner's job, how will these houses come into play?

Do you need/want 5 bedrooms?

Are you worried that you may need to resell it soon, 5 years or so or long term, 20 years plus... why would you need to resell? because you guys would want something different or a job change that you had to move across country for with little time to get your ducks in row.

We just bought a house in Dec. a sidewalk old neighborhood. That was a big thing on our list though, the sidewalk. We were moving from the rural country to town for better schools and my thought was if i was going to give up the woods, wildlife and creek that I wanted a sidewalk, so subdivision or side street really appealed to me. Only 1 place came close and it did not have the sidewalk but it had over an acre of land in city limits with mature fruit trees out back, stopping point there was the possible asbestos walls and exterior...
The one thing on our "this is what we would want in a house" list was no garage/outside building for storage/workspace. That was more hubby's department and I think he gave that up more for me because the house we found had all the check marks besides the things that were important for me.

Look at what your and your families priorities are and base your descision on that.

Can the semi busy road issue be resolved with a fence?

what can be done to the dull house to give it character? could you do gardens in the yard to make the outside more friendly? what about the inside, even if it is in perfect move in condition, what touches could you add to make it more yours

I would ask to see 12 months (or more) of electric and utility bills - you want to know what you are getting in for, make sure it really does have a lower cost of ownership. Make sure the house was occupied for the time period you are looking at the bills.

Do all of the bedrooms have legal egress windows based on current code?

Do you have a good home inspector lined up for it? An IR camera during the home inspection might be useful to look for water leaks. Ask about expected cost of trim replacement.

Ask the township if there are any expansion plans for the "busy road" right now. People with earth bermed houses usually want a more private location. Depending on the exact layout, you may be able to use landscaping and earth berms to decrease traffic noise. If you would need fencing to keep your kids safe, factor that into your cost of the purchase.

I think you can offer substantially less than the current asking price and have a chance of it being accepted. The less you pay for the house today, the easier it will be to sell in the future. Good luck!

Suburban tract houses can also be made interesting, though passive solar AND a ravine is hard to beat.

You already fell in love with the berm house and mentally started moving yourselves in - buy it as long as financially you can afford it and you like the school system for your kids.

Most people don't realize that they may be responsible for their own sidewalks. In older neighborhoods, the residents had to install their own sidewalks and maintain them. (That is why we have the term "city sidewalks" it means that the city or developer installed the sidewalks vs the homeowners).

Once you move in, you can petition the city for sidewalks in your areas as long as you don't mind your taxes going up (yes, everything has a price) OR, you can go to your neighbors and see if you can start a community neighborhood to cut a pathway and create a natural "sidewalk" made out of recycled materials or wood chips.

The house sounds lovely and as with all houses, will need repairs and maint. If you have concerns about a specific item or area (wood stove leaking, age of roof, etc.) just hire an expert in that area. I personally don't hold much respect for "home inspectors" since they work off a check list and can't really tell you much other than, "I think the roof is 20 years old based on the fact that the shingles are older and the house is 20 years old".

A roofer would be able to tell you on the spot. Ditto a plumber for plumbing probs, etc.

Best of luck in your new home. - You would have HATED the new house plus it had 1800 sq feet less.