Hi Marie. It seems like you are ready to jump into the buyer's pool but sticker shock is giving you reasons to pause.
It sounds like you had some interest in "those ridiculous looking houses in queens..." until you found out what they're valued at. Of course you give us very little information with which to give an adequate response to your question. I'll give it a shot.
Your question seems to imply that you want to spend only $250K. That certainly won't get you a house. A small one bedroom Coop perhaps but not a house. Well, maybe in Texas.
If you want to use the money for a large downpayment and closing costs, you stand a better chance of getting a house you can eventually call a home. This means you still need to have income and a solid credit rating.
I would suggest you go to your Bank for a loan pre-approval. The Bank will look at your income, assets and credit and will qualify you for a lona that you can afford. After that, you can find that dream house and live happily, well...you get the idea. Good Luck.