This is almost exactly my situation. Except it’s baby two that I’m pregnant with, and the decisions to abandon the purchase was made when we where barely 3 months.
The house was the perfect size, perfect garden, the area we wanted, etc.
We were 1 week from competing but the worry about the condition of the house, the fact that we wouldn’t be able to live in it straight away, and I was / am having a very difficult pregnancy (I’ve been signed off work since August and have only just returned as I’d been haemorrhaging constantly from the womb and docs don’t know the cause), all led my husband and I to back out.
We’ve lost lots of money, but the stress has lifted fully, and I’ve been able to focus on my health and my growing family. Bleeding has stopped and docs say it could have been triggered by stress, or at least made worse by it.
The people we were buying from were multi property landlords, who were quite difficult to deal with as searches had pulled up lots of problems, like extensions without planning permission, mould, etc, so I don’t actually feel that guilty. And more importantly, the decision to pull out might have saved my unborn baby’s life.
There will be more houses, more opportunities. We decided to focus on what is best for our family, however selfish that might seem to others.
No regrets here.
OP, do what is best for your physical and mental health.
Good luck with the rest of the pregnancy. 💐