Well, first of all, the purchase price of $200,000 was almost 10 years ago. So it has little to nothing to do with TODAY's value.
Secondly, the property has gone updating and restoration, which should contribute to an increase in value. The current assessment (which is 70% of the market value established by the Haddam town assessor in 2009) is 216,430. That means that in 2009, the town believed the value of that particular property to be $309,186., and that does NOT necessarily consider any improvements to the property, as there is no way of knowing from the assessment whether the assessor actually saw the condition of the property when the assessment was done.
Third, the property is an Antique/Historic home, so it is not unusual to find it close to a busy road. Roads that were there in 1835 and are still there today are generally busy roads. But if you're looking for a beautiful restored and updated historic home, that won't be something unexpected.
Establishing the value on ANY home is properly done by looking at sales of similar homes over the past six months or so, and making some adjustments for various features and improvements to "fine-tune" your average pricing. After looking at that information, and the competing market, a Seller is the one who establishes the asking price for there home.