Formal:
* La maison de mon grand-père est grande. (This is the most literal and formal translation.)
Informal:
* La maison de mon papi est grande. (Using "papi" for "grandfather" is more informal and affectionate.)
* Le chez-nous de mon grand-père est grand. (This translates literally to "My grandfather's home is big" and is a bit more colloquial.)
You can also use a more descriptive sentence:
* La maison de mon grand-père est très spacieuse. (This means "My grandfather's house is very spacious.")
The best choice will depend on the context and your relationship with the person you are talking to.