I'm pretty new here, I've been on the site frequently, but never signed up for an account until today. As "Thatniceguy" said, you'll get a much better gaming PC if you build your own and save a lot of money in the process. If you know what you're doing I say build it. For $700 you can make a pretty decent PC.
But it all really depends on what you want. You said you're not into hardcore graphics so the question is what kind of games are you going to be playing and what kind of settings are you expecting to run those games at. Since this is a gaming PC the first thing you should look for is the GPU.
I'd recommend GTX 650Ti or HD 7850 for the top of your budget (both generally around $170). Something a bit more comfortable in your budget would be either the GTX 650 or HD 7770 ($130 and $110). These cards aren't the best out there, but they're the best for the price of entry level gaming. The final recommendation would be an AMD A10-Trinity APU which will cover you CPU and GPU needs in one.
As far as your CPU goes I'd choose AMD's FX-4300. Normally I'd give Intel the hands down choice, but with the PlayStation 4 and Xbox One both using AMD CPU's it would probably be more beneficial if your PC had an AMD CPU as well. AMD CPU's get a bad rep, for not being better than Intel's, but while they may not be better in many cases they are generally cheaper, and perform comparably to similarly priced Intel's.
8GB of RAM, search around for a good deal, ASUS M5A97 for the motherboard, and the rest is really up to you. Shop around for deals.
At most that PC should run you around $600 - $650 going with the higher-end GPU for you budget. About $550 - $600 for the second set of GPU's. You could even go as low as a HD 6670 for $65 and bring the total PC price down to the $500 range.
Hope that helps.