Keep in mind that location, condition of the home, and upgrades that the seller may have done are only a few of the items that they may consider in their pricing. In some area $500,000 will get you a fixer-upper, so finding an agent that you trust, and that works in that area will really assist you in determining where the seller stands with their pricing.
Actually, thats a pretty reasonable price for a house with a basement, an acre of land. However, if that price is more than you want to pay, then there are likely more that would be available. My advice is to find an agent you are comfortable working with and let them help you find a little house that is more in what you want to spend. An agent working in your corner will help save you time and money! Good Luck on your search!