What you probably haven't done is think about the tradeoffs in an organized fashion.
For the Learning Annex Real Estate Wealth Expo in 2004 , I actually came up with a system:
You can compromise on:
Cost -- and buy something more expensive than you'd like
Condition -- and buy a fixer-upper at a discount
Convenience -- and move into an "up-and-coming" neighborhood near a hot neighborhood
Capacity -- and buy something that is far teenier than you'd ever hoped.