What's the location like?
If it's a good location and in budget, i din't think it's that bad. With some redecoration it would be perfectly nice.
I would offer what i thought it was worth for the area, less what i'd spend on the redecoration.
What is with that wallpaper btw? We are househunting and nearly every house has that- like everyone has been brainwashed by b&q. A feature wall in every room- that brown and blue flowery one, a stripy one, and a red colour one.