Edit: the more I read your post, the more RED FLAGS I see.
ask yourself - - - WHY does it need a water pump ?? Did the seller run it long or at all with a bad pump??
why does it need gear oil ?? does the shaft seals leak water into the lower unit gear case ??
are the seals in the gear case bad - causing the gear oil to leak out ?
At least he is telling you these things UP FRONT, and you don't have to address them after you buy it.
Education comes with experience and frustrations, but, it doesn't have to be expensive.
Like Pappy said, if there are no visual signs that it has overheated in the past, the "known issues"
can be dealt with by a novice. The water pump is very easy to replace, fuel lines the same.
IF you get this motor, or another one, go to ebay and buy a factory service manual and a parts book
for that year and model. Learn as you !!!!!
#1 issue would be, if it needs a water pump, LOOK CLOSELY for any signs
that the motor may have overheated in the past. Discolored or flaking paint
on the cylinders. If the cylinders have fresh paint on the them and not the rest
of the motor, it may "appear' as if the seller is trying to cover something up.
If there is - BEEP BEEP BEEP BACK UP BACK UP RUN AWAY !!!
In Central Florida, that would be an average price for a 25hp with controls and that many issues.
Maybe $300 if you are a smooth talker.