It's a very very stressful experience, but completely worth it in the end.
My take on the various types from personal experience and family and friends experiences:
International: guaranteed to be expensive, can sometimes be unpredictable, but you don't ever have any birth mother medical expenses or unpredictability with gaining custody. The child is pretty much guaranteed to not look like you if you are not adopting from a country of your ancestors, so you have to decide if that bothers you. A nice part about that is the timing of the adoption talk with your child will be decided for you because one day they will ask. You never have to worry about a birth parent randomly showing up, but your child never can satisfy that urge to meet the biological parents later in life. You can rarely adopt a newborn and you know it was very likely that your child was in a poor orphanage or foster home before they were placed in your home.
Foster care: Very noble but probably the most painful of all the processes. The foster care agencies are overworked and underfunded. Combine that with the fact that keeping families together is their number 1 priority, you get abused. They will lie to you repeatedly with promises after promise of this child being the one that will end up staying in your home only to have it taken from you and given back to the mother that broke its arm, rubbed feces in its face, and has a documented drug habit. What I have noticed with families that adopt through foster care is that after having 2-4 infants placed and removed from their homes they loosen their requirements and adopt an older child. Then after adopting the older child they often continue as a foster family until they get at least one infant. The people who foster are incredible and we desperately need them, but be aware of what you are in for.
Domestic through an agency: Very expensive but more straightforward than many of the other domestic options. An agency advertises, has contacts throughout the legal community, etc... You give them lots of money, and they find you a baby. They handle the birth mother, all the legal stuff, all the medical out of their fees, arranging your homestudy, etc... You do your part by giving them large sums of money
Domestic through an Attorney: (our method): Expenses vary, but typically they are cheaper than agency adoptions and can even be less than the tax credit. You find an attorney who specializes in adoptions, they present you with a file on a birthmother. You decide whether she gets to see your portfolio, and if she likes it she chooses you. You may end up paying room and board, medical, etc... The types of adoptions are wide open in this scenario. If they are more difficult, the attorney works more hours and you pay more. The ease of the adoption varies greatly with the quality of your attorney.
Domestic through your own ingenuity: With the advent of the internet, there are many options for marketing yourself. There are websites galore, web pages, etc... In the end, you still have to use an attorney. If you like marketing, this method is worth a try.
When asked about who gives up babies for adoptions, my attorney said this: In her experience, Educated whites have abortions, Asian girls don't get pregnant, Black families keep the baby and Grandma or another relative raises is, Hispanics often raise it themselves or with family, and poor country white girls have it and give it up for adoption. That statement is full of stereotypes, but in my attorneys experience, most of the babies available for non foster adoption from around North Central Florida are Caucasian. Don't know and don't care if that matters to you or anyone else.
The tax credit is awesome. I think it is up to $11,500 per child. That is a tax credit, not deduction. The credit is up to the amount you spent on the adoption, up to $11,500. They even changed it this year so that you get the entire amount on your refund even if you didn't pay that much in taxes the last year. The credit is granted once the adoption is legally finalized. That said, the financial side of foster care is wonderful. You don't have to pay for an attorney, you get money for daycare, and I think you even get money for college.
Little things:
-you think they have all your good and bad traits just like you do if they are genetically yours-you just think they learned them instead of being born with them.
-You will be Mommy and Daddy to the child really really quickly, it's amazing how quickly that happens.
-Children seem less stressed about switching than the parents.
-They become "yours" immediately-everyone else watch out because your wife is suddenly a momma bear.
-Everyone expects adopting families to adopt the exceptionally needy children. You may not want to, but they all think you should.
-Be prepared to be given as much weird advice on this topic as you I'm sure have been about getting pregnant.
-Everyone has a relative who might give up the kid-most don't actually give it up.
BTW-the homestudy people may scare you, but they actually work for you. They want you to pass. If you have half a brain and clean your house before they show up you will be fine. Even if they think you should do something differently they will use the homestudy as a chance to teach you how to do it right.