I am traveling with my wife and three teens. We would all like to stay in the same room. Where is the best place to stay so that we can walk to most of the attractions, like the Anne Frank House? And what are the places to avoid staying at?

You will not find a room big enough in all of Europe to fit all of you.

Amsterdam is very walkable from all areas.

Agree with Lostmymind....Not unless you opt for an apartment.

Agreeing with the rest. I never came across hotels with rooms for 5 people when I was researching my Amsterdam trip. How about an apartment or a houseboat?

Would two "adjoining" rooms be acceptable? That would be easier to find, I'd think.

Hotel de Westertoren, probably pretty bare bones... has a family room: between €120 and €200

http://www.hotelwestertoren.nl/

A-Train Hotel - apartment w/ 5 beds
http://www.atrainhotel.com/prices.php

You don't say what your budget is, but I was very happy at the hotel Ambassade. Walkable to just about anywhere you'd want to do.
For the Anne Frank House,I suggest buying tickets in advance.
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The Renaissance Marriott is in the beautiful area of Jordan & we've stayed there. Real close to Anne Frank House Museumm canal, restaurants, etc. I know they have 2 double bedded rooms. For a child, maybe they can bring in a cot; there was enough room in the large room we stayed in. Even had table & chairs & it was just a regular double room, not executive or anything? marriott.com

The OP wants a room for 5 adults...

Residence le Coin has a room for 4, and then a price for an "extra bed". Don't know if that bed is suited for a teen/adult, or if it is a small one for a child.
http://www.lecoin.nl/indexEN.html

I like the Renaissance as well, the double rooms are spacious enough to smuggle an extra teenager if he's willing to sleep in a sleeping bag (better than sleeping in a cot) The hotel reception area is big enough and busy enough that you can do so if you really must stay in one room. Drop your wife and one teenager at a nearby restaurant when you check in. This would make an interesting/intriguing trip report if you do one later.

Hotel Rembrandt offers a family room for 4-6 persons.
http://www.hotelrembrandt.nl/

Hotel Rembrandt is not the closest hotel to all the sights, but as Lostmymind said, Amsterdam is very walkable. Trams are efficient and frequent and they pass right by the hotel.

The A-Train hotel is closer to most things, but it's in front of the Centraal Station which, come nighttime is can be loud-ish and seedy though its bark is certainly worse than its bite.

The Westertoren is by far the best situated of the recommended options..it's about a four minute walk to Anne Frank House and the beautiful canals of the Jordaan. The website claims that the family rooms are on the backside of the hotel, and I would make sure that you would NOT be on the frontside when booking. The street is quite busy, trams are frequent, and I recall there being a few backpacker oriented cafes in the arcade under the hotel. It wouldn't be an issue unless you were on the frontside.

Le coin is also very well situated to the city centre, canals, museums etc.

I think the Ambassade is a cross between Grandma's house and a antiques market and I suspect that while many adults find it quite charming, I find it very stuffy and I suspect your teens would too.

I found a room at the Hotel de Westertoren that fits our needs. Thank you for the suggestion.
Does anyone have any other opinions about this particular hotel?

You can check it out on the hotel reviews on Tripadvisor. You might find it also on Booking.nl, Booking.com and/or Venere.com for Amsterdam. It will be very basic, I think it was rated a 1*.

quote: I think the Ambassade is a cross between Grandma's house and a antiques market and I suspect that while many adults find it quite charming, I find it very stuffy and I suspect your teens would too.

That wasn't my impression at all.
It wasn't to me a stuffy or antiques-filled warren. It was indeed not modern in style, but to me it was neither fussy nor fusty. My room, and the lobby, were airy and uncluttered. Comfortable rooms, not luxurious, but attractive and comfortable with traditional decor, but I wouldn't call it granny-ish at all. The location is close to many inexpensive bars, coffee houses and cafes, filled with young people, so I think the location quite central and attractive. The walk to the Anne Frank house was about 20 minutes. There are a few pics on the website
www.ambassade-hotel.nl

Lordy! I wouldn't want to spend the night in a room with one teen let alone three!! You're braver than I am, blaircrooke.