I would not spend the extra money for the lower time, between these two aircraft. Perhaps there are other factors affecting the relative values?
The recent top overhaul sort of makes up for the higher time somewhat. That said, engine time is not as much an indicator of the life you can expect from the engine, as the actual condition of the engine.
As said, a very low utilization engine can be less good. 350 hours in 5 years is okay, as long as that time was spread evenly across that calendar period.