We chose first on location, second on the house and 3rd on the yard.
Location is kind of funny, because opposite what most would say we chose to be OUTSIDE of the "best" school district. There is one here that has signs out front of the high school promoting how many students that year got accepted to the Ivy League, and is nationally recognized. But having graudated myself from the district 10 yeards ago and seeing my littlest brother graduate from there last spring, I had no desire to send my children there. Another good reason for avoiding that district is they are constantly rezoning, and because so many people want to be in that district the value of your home can easily vary $100,000 if you are in the district or not. So many people have seen their homes rise and fall in value that much literally overnight based on the latest rezoning and it has caused many lengthy legal battles, etc. We chose to live on the new side of town and have a good (but not the best) school district. As important to us was having a family friendly neighborhood (having lived with HORRIBLE neighbors before), so when we shopped we payed close attention to the neighborhood and looked for kids outdoors playing, people outside, etc. We ended up with a idealic neighborhood where we know everyone, people call before running to the grocery store to see if you need anything, or offer to watch your kids if you are going, we get together for dinner at least once a week, etc. We have 7 other kindergartners besides my daughter on our street alone (it helps that 3 are triplets, lol). And while one may discount the importance, our neighborhood has made all the difference for myself and my kids making the transition to moving here (we moved back to where I grew up, but only after having lived elsewhere since I had graduated college). Also in location was our actual location in the development. SOme house back to businesses and some are on busy streets. It was important to us to get a quiet street, with no views of local buisnesses and as private a lot as possible.
The next was house. And again I'm probably different then most in that I wanted a smaller house. We shopped mainly 2-3,000 sqft which is common here and ended up buying a 1650 sqft (cheaper to heat and air condition and less time to clean, lol). I wanted a 1 story, and had certain layout requirements that this house met. It was very well built and had very nice upgrades that we could actually use (some had upgraded granite etc, but they would pick an ugly granite I would never keep anyways... so i didn't really consider it an upgrade). My mom had always said buy the smallest house in the nicest development that you can afford. And without meaning too, thats what we did. We got the smalllest house in a very nice development (biggest house in our development is 4,600 sqft).
Yard was our lowest priority. We were moving from a townhouse and have never really cared about a yard. Our development is centered around a great park and we have 2 others besides that within short walking distance. We got what a first looked like a tiny yard on a corner lot. However after we moved in, our landscape designer (the yard wasn't done) convinced us to push our fence out and expand out backyard (which we could do being on a corner lot). So we actually ended up with a fantastic backyard, and one of the bigger ones in our neighborhood. It ended up being like a U shape, which our designer took advantage of by creating outdoor "rooms" which creates a very different feeling (actually more spacious) then just a big open yard and is wonderful for entertaining. He created a tiered design on our front yard so it amazingly looks nicer out there too even though we took room from the frontyard (on the side) to expand the back. So take a look at which lots may allow for options like that.