Everybody has different views about what they like and dislike. While you may not care to hear cars go by when you are sitting outside enjoying the lazy afternoon and you prefer to save yourself $70k, some other people may not be able to live with it.
Regarding the house by the trees some buyers may not like the idea of having some future homes built right in their backyard, except if a small green belt is required between the existing home and the new ones. It is easy to fall in love with a home that has privacy now, but what about later?
But apart from the likes and dislikes, I would say that if both homes are the same and that the only difference are the trees (which won't stay I assume) and the lot size, I don't see why there would be such a difference in price.
I also wonder if an appraiser will appraise that home at that price in todays market.
What do I think would be a reasonable difference? You and your agent are the only one that can answer that question. I am sure that you have seen other homes in the area and that you are educated now to take the best decision for yourself.

The first answer here was good. The lower priced home suffers in 2 areas of economic obsolescence. 1. Power lines and 2. On a busy street. This property is somewhat distressed. Also, you're looking at almost 1/2 the lot size.

As markets rise, somewhat desperate buyers grab everything. When markets decline, homes with issues are the last ones to sell. The Seller may find he/she must reduce more than they thought possible to be successful.

Buyers are always better off buying in the best location possible location and should always consider their future resale into their purchase.

As for the Seller holding "firm" on the first house......Here's a law of negotiation, "Time is the enemy of the Seller"

If the home is priced right for the market it will sell. If not, that Seller will be bargaining. (Unless his goal is to NOT SELL). The market (this means you!) does not care what the Seller's financial condition is. If the Seller is upside down, they'll have to make up the difference or negotiate with their bank.

Most areas are currently Buyer's markets. You hold the advantage!

Hey, for 70K I’ll live with the noise! :) Sounds like the seller is not the builder so you have to take into account their financial situation. Maybe they just cannot afford to sell the house as low as you want it to buy. Take into account your own circumstances and liking of the home. If you feel that you can find the same or better home for less and in good location, walk. If you think its a good price as listed or within reasonable reduction ,go for it. good luck
Vera

alot of info and factors to consider here. When you say power lines what exactly do you mean. Are they actual power lines that you can hear and feel the voltage or are they just overhead power lines typical in older neighborhoods. In new home communities there are always different prices for Premium lots. Honestly though with what you are saying $70,000 seems a bit high to me. I guess it really depends on Price point of that particular community as well. How do you know the builder is firm on that price? Have you made an offer in writing yet? With all the wonderful properties on the market why pay more than you feel its worth if thats the case. Hope this helps! Dan Johnson

People are willing to pay a big premium for houses that are located on a cul de sac or even a side road rather then a main road. How much? That's what market value is about. Whatever amount more than a buyer is willing to pay.

The seller of the second home is choosing to ignore the earlier sale. Sellers can price their homes as they wish, even though their agents may recommend something different. There are factors that could explain the low price of the "street" home. Perhaps it was a short sale or a bank foreclosure. In these instances a sale price could be below true market value. Talk to your agent. Absent some explanation like this, go find another home.

darn...my answer to the last post was posted after the question was removed. The two variables here are lot size and location. Cul-de-sac is obviously more desirable (potentially less noise, nobody speeding by your house). By itself, the lot size would make a significant price difference.. location ... ..off of 39th .. which is currently a 2-lane rd..(could be widened some time in the future) .. but I would have a hard time swallowing $70K for it. Is there another house that's same size somewhere in between? How was it priced?

Whether or not you walk is a decision you should discuss with your agent and also depends on where you are in the contract.

9000 is a pretty good size compared to a 5000 on the road.
gut- $40ish but it all depends upon the sellers motivation to sell.
How long has he been on the market.
I am assuming that the home is over 400,000 since your zip is in
Bothell and is new construction or very new. If you love it and will be in it
for the next 7+ years and have seen everything out there. You just need to decide
to wait for something as good to come on or pull the trigger :-) We don't have a
crystal ball as to where the market will be in the future.
One aside is that there is a ton of new construction on the market in
that area and it isn't selling very quickly. In the 98021 area there are currently
133 homes available that are year built 2006+. In the last month only 10 homes have
sold with the same criteria leading to the conclusion that there is appr. 10+ months of inventory
on the market. Typically anything over 6 months is considered a buyers market.

Houses on busy streets can often realize a market value difference by as much as 15 - 20% lower than other comparable homes in more desireable locations, particularly in softer markets where Buyers have ample homes from which to choose. You did not specify the respective price of each home, so if the $ 70,000 price difference falls in line with 15 -20%, then yes, I would say that is probably a reasonable difference. Also, how much of an adjustment is required depends on how busy of a street you are talking about (i.e. a four lane highway would be a greater difference than a 2 lane main city street).