It looks like it's in very nice condition, and I'd say two hundred dollars is a good price for it. I'd make sure the wheels spin true (straight) and the tires hold air and all of that good stuff. The consumables (like cables and chain and freewheel) are probably new enough still to not need replacing.
It looks like a small frame (maybe 15" or 17"?), so would likely be best for someone with short or medium height (probably less than 5'10" or so). Bike fit is very personal, so there are few absolutes in this area -- just make sure you're comfortable on it before purchase.