Not a style that particularly appeals to me, but the setting on Frye "Lake" (my father once explained to me that a lake was a body of water you couldn't see across, and everything else was a pond. "Except, he added, "for real estate agents: they describe anything with water in it as a lake.") is very special, and you can always fix a house, but not its location. The listing notes that despite its proximity to that water, the house is in the FEMA "X" zone, which puts it outside the 500 year zone. Flood insurance should therefore not be required.
Owners paid $1.8 for it in 2000 and obviously spent a lot of money on it since, but I'd guess they'll do just fine here, assuming a final price at close to this ask, and figuring in 16 years of enjoying the house.