Help me choose a house! Urgent!

[Chesthairlikekingkong]

We are downsizing for financial reasons, two young children, pets who need an outdoor space (so not most flats). We cannot borrow anymore due to financial commitments, and the bank won't let us.
We have to live in an expensive area for work and school.
A three bed semi with garden in a nice area is just not gunna pop up, even in a shit part of this area, they just don't come up.
I have to get a move on as we are at risk of losing our buyers. We have been waiting for something perfect but have come to the realisation that perfect doesn't exist on our budget.
Option 1:
Bungalow with two beds and a loft space. It's basically a half completed renovation. In our dream area. Very Small bedrooms and weird layout, which could be changed if we could bash down a room. Quiet road and nice residential street. Back garden is small but workable and pretty outlook. Unlikely to be able to extend.
We would be able to save a lot on mortgage payments but would have to spend on ongoing building work. I am not practical so this will have to be outsourced.

Option 2: sprawling three bed in crap area. Not rough but soulless. Not near anything except a run down corner shop. 20 minutes drive to school and work (we can walk from option 1 to both) crap buses for DP. HOWEVER! Huge rooms and garden. Nice decor. Good street, very quiet and pro social neighbours. Lovely outbuildings and annex thing which will be useful for guests.

Help, which one? Or neither?

No 3 looks good. Not a lot of outside space, but inside is very nice.

Option 3 looks very nice, but is there a fair bit of new building going on around it? It would be interesting to know what the pile of gravel (?) spotted by Travel is for. It's hard to tell from the agent's photos, but it looks as if perhaps a piece of garden or an old parking place has been sold off for building; the house surrounded by dark grey walls looks new - or even unfinished. This might not matter at all, but it would not be a bad idea to check (council planning website?) what planning /building regs permissions have been given recently for the land and/or buildings close to the house.

I think 3 looks good, I think you are ever so slightly paying for the fact that it looks nice on the surface so do check whether it’s been done by a builder to sell- if so check things like the boiler, wiring, roof, gutters, damp etc. You don’t want to pay the price for something being done but then end up having to re-do it yourself. Also I would check what parking is like- even if you don’t have a car if it’s a nightmare it will put others off, and the neighbours- walk past a few times and see if they are noisy, ask the seller how they get on with them. Terraces are often fantastic in terms of accommodation but can be horribly noisy and there you’ve also got people behind you (whereas option 1 for example only had 1 neighbour and no one behind it).

Option 1 doesn’t seem to be big enough for a family.
You May spend one year renovating, then one year to enjoy it and then you will start to feel cramped.
I would choose option 2 without hesitation

Option 3 is lovely but I don't mnow locations.

Number 3 is a lovely house. Number 2 is way too small.