Likely reasons this house hasn't sold in 4 years:
- It is overpriced
- It has some major and expensive structural issues
- The owner is unreasonable or difficult to work with
- The owner is too cheap to use a realtor
- All of the above
Does the Zillow history show it going under contract and then back on the market multiple times? That is a bad sign.
"Sunken" living rooms were a fad back in the 60's and 70's made popular by the set of the Dick Van Dyke show.
EDIT: After finding it on Zillow my bet is that it has some major issue. Maybe it needs a new septic field, maybe the addition was done by the homeowner, and isn't permitted or done to code.
It is $30 - $50,000 less than similar sized houses in the area but hasn't sold years. That is a huge red flag. The fact that the price is only dropping about $1000 a year makes me suspect the owner thinks it is worth more than the market says.
The neighborhood likely isn't helping. Google maps shows a singlewide a couple doors down with 4 cars and what look like a bunch of crap in the yard.