The hosts are fantastic. The house is amazing. The garden is a treat. Stay here.
The town: a lot more alive than expected, well into the night. Bumping past midnight, packed tavernas, lovely people all around. Average food, but some great restaurants by the beach. Cool shops that source locally; I got 2 kg of great local salt cheaply in the gift shop run by a french expat lady. Belgian archeologist group in town, very cool, talk to them. Great butcher, talk to them, ask them to get you stuff. Very international crowd, including residents, everyone speaks English Good bakery. Not a lot of vegetables.
The house: perfect for a large family, three real bedrooms, lots of space, enclosed with stucco fence, so small children are safe. We could have cooked every night, including bbq. Working ac. Typical Greek beds and furnishing. Extremely charming space. Long walk to beach, but doable. Around the corner from everything in town. Would definitely come back.
Area: traditional village area with olive groves. Real people live here, as opposed to tourists or investors. Surfing community nearby. Potentially very windy, getting the brunt of the wind off of Karpathos in the summer. Lots of sites, including Minoan towns you can wonder around. Sitia is close with all that you can't get in the village (fish, supermarket, etc). Definitely not as touristic and developed as Chania area or around Iraklion. Not a villa Riviera like in the south. Rural and traditional. You may actually meet Greek people that won't treat you like a tourist. Good luck!