I've honestly decided that if we don't find another house we want (because I'm not going to buy just to buy, even with the lower prices), and this house we put the offer in doesn't happen, then it's not meant to be at that moment. I'm not too worried about it, really, we have a roof over our heads right now. The short sale is moving along and we're the only offer they are considering, so it's not out of contention yet.
One we looked at today was a higher price with a lot of square footage... but the entire basement was sectioned off into three apartments, which cut the footage of our living space in half. It also need a lot of work, which would take extra money we wouldn't have because of the higher price point. It was also a short sale. The upstairs is nice, and if it were just that, I'd definitely consider it... for a lower price. If it looked easy to put in internal stairs or somehow make the house one unit, it would be more attractive. We're not interested in becoming landlords right now, for many reasons, so houses with rental property built in are not appealing (although I know, it could pay our mortgage).
I'm a strong believer in following my gut. We'll see how that pans out
(I should add that I would LOVE to find a house I love better and that is cheaper and closer to my job rather than the one we are waiting on, so I'm pretty open to something else! Nothing we've seen since even comes close though)