I would seriously consider trying to add even more and bring it up to 3000 words. Chapter books are easier to sell.
I'd have to go back to read your story, but I doubt very seriously whether it would work as an easy reader without revisions. Writing 'easy readers' is really, really, really hard.
You have to think about language in a whole different way, because English is so frickin' hard to read. In an easy reader, you need to keep the subject at the beginning of almost every sentence. You can throw in a few "When he finished" or "The next morning," but complex sentences really throw beginning readers for a loop. Three-syllable words are murder. And don't get me started on words like "laughter" and "daughter."
Unless you understand what makes a WORD easy or hard to read, and what makes a SENTENCE easy or hard to read, then you really, really, really don't want to go into that territory.
And...editors know that. Because it is such a specialized skill, few of them take easy reader submissions. So what do they do? They look at picture book authors. They find people who can write really clear, simple, enjoyable PB prose, and they contract with them to write easy readers. People like Ted Arnold, author of the FLY GUY series.
So, if you're seriously committed to easy readers, I recommend shopping them as PBs. Get an agent or an editor that way. Then use the connection to develop an easy reader series.
At 1700 words, you're way beyond PB/easy reader length, probably. Better to go up, at this point.