I believe the Signet is a very low end model with a hi-ten steel frame and steel rims. At $200, I think it's priced too high even for the bay area market. OTOH, if it is your size and in good shape, it may be worth it to you. Finding such small frames is difficult, and even at $200 it's more bike than you'd find for twice the price at Wal-Mart.
I'd try to negotiate a lower price, say $100 - $125.
EDIT - Bill beat me to it.
