Threefive: I agree...but what about the gas utility ? I don't think it's hooked up. Is that a significant expense? It's also a split lot so there is a house closer to the alley...I am wondering if there was some cost prohibitive reason?
If you don't have gas to the house, then there is always propane or even heating oil, both of which should be cheaper for the same amount of heat as all-electric. A heat pump system would also be significantly better and provide AC in the summer. When it's so cold that the heat pump is pretty inefficient, it will switch to auxiliary heat (in this case, electric). But, compared to straight electric 100% of the time, it's still a big win. Heat pumps cut, on average, 50% of electricity use compared to an electric furnace. Heating and cooling make up about half of a homes typical electric bill. This means switching to either a heat pump/gas/oil furnace can cut your total energy bill (electric + possibly gas) by roughly 25%.
Now, is it worth it to you to make a big capital expense if the system is working fine? If you have a decent duct system, for a 1,000 sq. ft. house, a replacement furnace of any fuel will be around $5,000 installed. (This could vary WILDLY depending on labor rates in your area). You could easily save an average of $25-50 per month (lots more details needed to narrow that range). So, best case scenario has a 10 year pay back period. Maybe not worth updating until you have to.
All of that said, if I was evaluating a small 1,000 sq. ft. house that really needed a new HVAC system, floors, and smell remediation, then I would pass unless I could get it for close to half the going price per sq. ft. and I was intending on gutting it, anyway.