Your statements are a perfect example of the difference between looking for a deal and looking for a home just like you said.
To me looking for the home that fits my needs is more important then the deal I get on it. The Pudregal house was that home, if only just for my family. I did get more caught up in the deal though because IMO it needed 100k just to get to be livable. New roof, pretty much full mold remediation and plumbing issues. Yet the lot was exactly what fit our bill and the location south of Pomerado was what we desired should we stay in Scripps. Not a cul-de-sac but not a busy street either and nobody behind the home.
To each his own though, for me the priority is the home but for many others it is the deal.