Looks to be a 1999 based on the color and Marzocchi Bomber Z-4 fork
1999 Rocky Mountain Hammer Race - BikePedia
They replaced the seat post and saddle with a cheap suspension post. Ask to see if the owner still has the originals around. If they don't, use that as a bargaining tool. Look to see if any other parts have been replaced (goodies like the Race Face cranks, ect).
$1125 originally so I think the $250 price is OK if you're looking for a good steel hardtail (with a Reynolds decal). Expecting to pay $125 is unrealistic.