Ok, depending on what you want, I see appeal in both.

1 - Much more yard, fenced in, and it is all usable. plus, it has a shed that will be vastly useful (lawnmower etc). Without that, you'll give up the garage. Slightly more SQFT. Negative - looks older.
2 - Much newer looking. Better curb appeal. Negatives - hill in front yard will be harder to maintain and you don't have a fence for kids / yard. A decent fence will run you several grand.

From the pictures, I think 2 looks nicer, but from personal experience, a LOT can be said from seeing houses first hand! For all we know, house 1 could be MUCH larger inside due to layout.....you really need to walk around inside and see what works for you