Without looking too far into it, the average range is about 400k if it was in average condition and was 1100 sq ft. Have you seen the pictures? This property is completely remodeled to 2014 standards. It looks like an upscale hotel on the inside. It is also almost 1800 sq ft. and the landscaping is to die for.
To answer your questions, is it high? Yes. it is priced high. If it is beyond your budget, let it go and see what happens. A seller can ask whatever they want for a property. It doesn't necessarily mean that they will get it. That house is awesome! Lets see what happens.
Best of luck,
Coldwell Banker Star Realty
BRE lic #01456982