Join Date: Jun 2008
Location: Madison, WI
Bikes: 84 Raleigh Portage, 83 Trek 620
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Don't know where you are located, but if you live in an area with a hot market for old road bikes, that would be a fair price assuming it all checks out OK. It sounds as though the seller knows a fair amount about bikes if he/she is the one who changed all the listed new parts. That should give you some level of comfort. You can certainly take it to a LBS, but make sure that it is one that appreciates older bikes for what they are. If it is just a place that is trying to sell new bikes, they may point out all kinds of bogus issues that really are non-issues. Personally I wouldn't take it to an LBS, but I'd consider it if I was paying that much for a bike and didn't know much about recognizing potential problems.
As far as the frame size it is kind of hard to know without spending some time on the bike. What you're looking for is a little stand-over clearance and a comfortable reach from the saddle to the handlebar. You can of course move the bar closer, further away, higher or lower by changing the stem or adjusting the one you have now. You should also play with the seat height until you get that just right. Because of my long arms and torso, I tend to look for bikes that are too tall for me and I've also got a 120 mm Nitto technomic stem to move the bar out and up on the one bike that is about my size.