Being out the survey fees is par for the course...
As a woodworker replacing the sole will not be onerous, just pricey ('teak & holly' plywood runs around $300/ sheet) It looks like the boat is in relatively good shape and clean, esp outside. A gasket set and a few days work may well address any leaks around the engine.
With a reasonable survey, this looks like quite a lot of boat for around $20K. Since you say it's larger than you intended to buy, the last thing is to be certain you can carry the increased costs of the larger boat (moorage, sails, lines, etc will all cost more)
That said, you're in an easy position with no real penalty for walking away - there's no shortage of boats for sale these days.
".. there is much you could do at sea with common sense.. and very little you could do without it.."
Capt G E Ericson (from "The Cruel Sea" by Nicholas Monsarrat)
1984 Fast/Nicholson 345 "FastForward"
Last edited by Faster; 11-21-2010 at 01:38 PM.