Price seems ok. You're right to suspect the turbo at this mileage, they usually go before 175K. Could be passing quite a bit of oil. You're going to want to inspect the big intercooler air hoses closely. Oil rots them, causing all kinds of running problems and black smoke among other things. No deterioration allowed! Other problems are common to all 700 and 900 cars. Look for oil leaks, find out when the timing belt was done, look for coolant leaks at the water pump as well as the special turbo hoses, check all front suspension parts for looseness and look at the brakes, tires and exhaust. It's a good car design- most of the 700's quirks were worked out by the time the 900 was introduced. Plan on putting a fuel pump relay in it right away if the one in it is old.
Good luck with it! SOunds like a good car. If you don't think you're qualified to check certain mechanical things, pay a shop for 1/2 hour labor or whatever to get a once-over. This is just to make yourself a list, and it'll save you surprises in the long run.
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Rob Bareiss, New London CT ::: 86 244DL, 87 244DL, 88 744GLE, 91 244: 808K total
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