For basic items such as +1 swords and potions of healing I was fairly lenient. A +1 Sword basically required something like Damascus Steel, a healing potion maybe holy water + a good berry something like that. I think one of the players option books had the rules we ended up using. Magic item creation was rare though.

A Flametongue would be harder obviously along with a +5 weapon but something like a holy avenger yeah you are going to jump through hoops for that one.