I am curious about why you say it is adjacent to Los Altos Hills? What city is it in, and what is the school district - Palo Alto School district will be slightly more desireable. I live in Los Altos Hills, and the prices have been soft in this city due to some possible distressed sales, or properties that were incorrectly priced initially and then experiencing significant price reductions before generating a successful closed sale.
Also, is it convenient to 280, downtown Los Altos? if close to 280, does it experience noise from 280? Hopefull that helps. I would stress to the owner, that it is important not to over price the house.