Without knowing a little more about the home it will be hard to say whether or not it is overpriced. It is on the higher range for many of the homes in that area with similar square footage but that doesn't necessairly mean that it is overpriced as there are some homes that have sold for more as well.
Also, don't forget that ultimately a home is worth whatever a buyer is willing to pay for it. Do you personally feel like it is worth around $640,000?
It's also almost impossible to predict resell value. While the market is slower right now than it has been in the past couple of years many people are feeling it is already picking back up...either way in 4-5 years your home will be gaining value again. Real estate typically has a year or two of slower sales followed by several years of fast growth. We are in the slower time now...making it a great time to buy.
Realistically, your home should appreciate around 5% each year...if not more. That is at least a good basic rule to set for realistic expectations.
Hope that helps...if you have more info about the home I'd be happy to compare recent sales of homes in the surrounding area!
Also...as a buyer you have more power than ever before. Make sure you discuss with your realtor how to use this power to your advantage in the current market conditions.
Please visit my website http://www.issaquahsammamishhomes.com to view my market trend newsletters by area. You can contact me at TheRhodesTeam@msn.com with any additional questions.
Craig Rhodes, Windermere, Issaquah
Here is another link you can use. It pulls actual MLS data and will show you Sold, Pending and Active homes over the past 3 months around the address of the home you are looking at. That will give you a more specific look at the area and not just all of Issaquah.
Craig has provided you with helpful information about average prices in Issaquah and I think Ardell brings up a great point about viewing the property before giving you advice on the listing price. There is no way for anyone to tell you how the market perform in 4-5 years. If you decide to purchase a new construction home, I always advise buyers to make sure it comes with a 1 year builders warranty. You'll want to get a home inspection before the year is up to make sure everything is still in proper condition. If you buy the Bothell home and it's 50-100k less then consider how much you will spend in maintenance and upgrades to get the home in the condition you want it.
Craig Rhodes - Windermere Issaquah
In fact this is a good example of why most consumers find value in having an agent view property with them, and assist in their decision making process, even if it is a fee for service assistance when they are down to two choices like this.
There are many factors to the value of a home. What is the lot size, what area is it in. Is the home new and what are the interior details. It's hard to say right now what appreciation rates will be in 4-5 years. Although are real estate market is still good the growth rates have slowed but it's a good chance that the value will have gone up, again depending on the home details, location and quality.
I actually do a lot of work with homes in the Bothell area. I have a listing that is 2300 sq ft in a new Centex home community that is priced at $529,950. I know alot of commuters to Microsoft have moved into this community. The new Connector bus route is right near by. You did get more home for your money in this area but also will be sacrificing a little on the commute. It isn't a terrible drive but will add a few minutes.
Ultimately you have to decide which floor plan you like better...which location...and then if the price difference is justified in your mind. Discuss with your realtor comparable home sales in that area and hopefully your realtor can negotiate a good price on whatever home you choose to purchase.