Well, 25 BTC is definitely way overpriced for that house. So, yes, he should seriously take it and run.
Actually, given the condition and the location of the house, I consider it having a negative value on the real estate market.
If you put in a bid of -25 BTC it would be the only ligit bid so far
![Wink](https://bitcointalk.org/Smileys/default/wink.gif)
Unfortunately, though, I wouldn't even touch that house for -50
![Grin](https://bitcointalk.org/Smileys/default/grin.gif)