We bought our '89 wagon, 147k, 9 years ago for $4k, but it was what I might call "immaculate", and thats also only after we took it to an independent Volvo mechanic and had it throroughly checked out.

(The seller was asking 5k but we "wore him out" I think. haha. He didn't know I would have gone high as maybe $4700 if he gave us a hard time. The wagon had been garaged, and it was easy to see just how well it had been taken care of. We are 2nd owner.)

Anyway, cost $100 for the "diagnosis" but was worth it to us. As it is, its been a great wagon for us! (Oh, it did come "well loaded" and we could see it had been taken care of really well and he had "tons" of maintenance receipts)

I tend to be cautious; and pay attention to the seller and how he is answering your questions. Get a Carfax, tho that doesnt tell you everything for sure.

The car is worth what you feel it is worth after (if) you have checked it out, and your pocketbook. Im not sure what I would pay for the one you are considering, but Id definetly make a low offer (after the "diagnosis") such as $900 and see how the seller reacts.

It may be in good condition now, but at 200k you will have more and more upkeep. I think, and this is a pure guess--$1200 would be my top, mayyybe $1500-but that's it) assuming, again, it checked out really good; What you are willing to pay may be another story.
Good luck.