I see what are either Skyjacker or Rough Country coils and shocks (Bleh), short arms on 10" of lift (NOOOO.), 4" body lift (NOOOOOOOO!) awful front bumper (Nope), beaten flares and wheels with zero backspacing.
And don't quote me on this, but
Hack and whack custom shop garbage. Don't touch it with a thousand-foot pole, and DEFINITELY don't trade in a perfectly good '05 TJ for it. Listen to your Dad, that '97 is a complete hackjob. I can't speak for the quality of the engine swap, which is a fairly common and easy swap in Jeeps, but I wouldn't trust that kind of work to anybody who thinks that 10" coils and short arms and a 4" body lift are a good idea.
I'd pay, maybe, $4000 for that Jeep. A nice '05 is worth 2-3 times that much.