Firstly, Selcuk is a very quiet town, especially in low season. Homeros Guesthouse is a lovely place to stay but isn't your typical "hostel" with lots of interactions with fellow travellers (at least when I was there in winter, but probably just depends on who's around and whether the common areas are open). I was traveling alone, but if you have a partner/family member/friend with you then the lack of interaction won't be a big deal.
Breakfast is a plate of fruit, veg, jams, an egg and a basket of bread. It's nice but very basic and you may need to eat again fairly soon. The breakfast room is the best part of the experience - it is beautifully decorated and feels very Turkish (and has a hot stove which is great in winter). Tea and coffee is also offered.
I'm surprised a home-cooked dinner was available for recent reviewers as it didn't seem to be possible during my stay (perhaps there were too few guests?). Neither did a free glass of wine seem to be on offer. In fact, I'm not sure if the common room or upstairs bar area were open at all.
The rooms can be a bit cold but they also have heaters and extra blankets, so you can warm up without too much trouble. Hot water comes eventually but don't have super long showers as it may run out. The rooms are nicely decorated as well and feel very special to stay in. I ended up with a twin with private bathroom for 60 TRY a night, but I was looked for something on a low budget and I can't help but think there must have been cheaper rooms available in the Pension. It was a fairly reasonable price, though, especially given the quality of the room. Perhaps because of the price it seems to cater to slightly older travellers (while I was there anyway).
The staff (or at least Shaziye who I met) were very sweet. I never met the owner (Dervish), but I did hear about him steering some other guests towards a particular kebab restaurant. I'm told the food was good but they were unable to see a menu and it ended up being very pricey, so perhaps just stick to your own restaurant choices (although there's not a whole lot available in the area).
The Pension is in a good location, 2 minutes' walk from St John's Basilica and about 10 mins from the bus and train stations. The rooms are great and very homely and the common breakfast area is nice (as are the owners). I would recommend being more assertive than I was and actually asking about the free wine, dinner and common areas so you can make the most of the experience.
Ask for details of all available rooms and their prices beforehand so you can make a decision.
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This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.