Hate to hop into the fray, but I'm just not seeing how "What she failed to see, however, was that no house, no inheritance, could ever make up the loss of her in my life" can possibly mean "Well, she made the right decision! The house was more important than her own life!"
I love "context is for the weak" as much as anyone else, but the context for your quote is "After knowing my dad for all those years, she knew exactly how he would have reacted. The truth of the matter is that she was right -- he would have stopped looking for a home, he would have worried himself sick about what was coming down the road" - in other words, she was right about how his dad would react, not right that the house was more important that her life.