That house is PERFECT!  It has the right amount of bedrooms, it's the perfect size, I love the flow of the main living spaces, and the exterior siding and landscaping are just what I'm looking for in a home.

But... it's not in the neighborhood or location where I'd like to live.

Most buyers won't buy the house described above, because they won't be able to change the location or neighborhood of the house.

You can finish some basement space to add a bedroom.

You can build an addition to create more living space.

You can open up some walls or close in some openings to affect the flow of the main living spaces.

You can paint or replace exterior siding.

You can add, remove or change the landscaping.

But... you can't change the location or neighborhood where that house is situated.

** Yes, I understand that technically you could move a house, but it's rather cost prohibitive.  ;-)

So... if you see a house that you love, but it's in the wrong neighborhood or location... chances are, you won't end up buying it.

Buy a house based on the things you cannot change... and be willing to change the things you can.