I have been riding a 1994 M60 for the past three years -- over 5000 miles and it has been a solid bike. Over the course of those miles I had to replace the chain, cassette and rear derailleur.

If it is ready to go $110 would be an okay price in your market. You should check everything for wear and I would try to get the cost down a bit. Factor in buying new tires -- almost every old bike I have ever bought needed the tires replaced.