I've been selling vintage bikes for many years, and shorter bikes sell for a premium (and tall bikes sell at a discount). Under 53/54cm = short, and the smaller the size, the larger the premium.

If that bike is ready to ride, then the price is a tad high to OK. Around here, Peugeots get a premium as well. At the $225 price point, I would not expect to see anything special component wise.

Just noticed you are buying from a shop. Around here, shops charge a hefty premium over private sellers, and get it. I sell some bikes on consignment through a local shop. Even though they charge me a 25% fee, I am way ahead as their prices tend to be 40% to 50% over what I can get. They love smaller bikes.

Really sounds like you have zero respect for this guy, so personally, I would keep looking.

Might be a 1984 PH10, if so, fork is a replacement. I avoid bikes with replacement forks, as often (but not always) they were replaced after a crash. In addition, I just like the appearance of a vintage bike with its original fork. But pictures are not good enough for me to tell.