To answer your question, it's a matter of trust. Do you trust the seller? If you don't, then stay away. If you do, then don't worry about it.

As to the price, though, I agree with those who said it's a lot to spend for a refinished 25-year old Basso. For comparison, only this month I picked up a 1993 Gap frame on ebay, for a $150 buy-it-now price plus $50 shipping. Nothing wrong with the frame, some chips and scratches in the paint. And the color: it is purple and green .

That said, "way ugly" is a matter of opinion, and I won't be making any decision on that until I've got the bike built and done some serious riding on it. For $200 I have the luxury of deciding whether the frame is worth a repaint. If I decide it is, I get to pick the color and even have the option of having the frame modified before springing for paint should I chose to go in that direction. And if I do, I am pretty sure I'll spend less than $580 doing so.

If you are 100% convinced this Basso is the bike you want, that it's the size you want, that it's the color you want, &c, then maybe the price isn't too bad. If you have any doubt about any of this, then I think the price is too high.