I personally like houses with very large and private outdoor living spaces and usually pay a premium for these amenities as long as the house meets my needs otherwise. I agree with some of the other posters if you can step up a little in price you can probably get a lot more house but then again you end up with a bigger payment, more upkeep, and higher taxes.
The only thing that would make me a little nervous is that prices in mission hills seem to be dropping pretty close to that price range and I think you would be getting a much better location.