$1295 ain't a bad deal. BUT it's a remote steer motor best I can tell. Tiller steer 25's......in this area.....would be up around $2000.
Serviced? Well if they didn't replace the oil in the foot, and didn't at least inspect the impeller, I'd question what they did. Maybe put a pair of spark plugs in it? But on the other hand, if they're offering a 90 day warranty, they must be pretty confident.
The prop has either been painted or replaced. They come with white props from the factory. What little I can see, it looks like a Solas prop. The white yamaha prop has thinner blades among other things.
If the compression is 120 on both cylinders, it's probably a good motor. But I still question why someone would service a motor, and not replace the fluid in the foot, or at least check the water pump and it's parts for wear....
if you're interested in it, ask them to put it in a test tank, and let you hear it run. Then ask them to replace the impeller and foot oil, and then they've got a deal.
That motor didn't change much from the late 1980's until 2008 when they stopped selling them in the US. In the mid '90's it lost oil injection. In 2005/6 the carbs became EPA compliant (for that time) in that they run leaner at idle and they also have capped idle mixture screws. Those were the major changes. They're good motors, dual carb, they idle 10x better than most single carb 25's; and some of the better idle quality is due to the engine displacement....they're only 395cc (most of the 25's were close to 500cc). A smaller engine, idles great, uses a little less fuel than single carb'd 500cc motors. And the oil injection is nice
But I'd personally still rather have a 4 stroke. I've had both.