Check the neck angle with a straightedge. Should be around the top of the bridge, with decent saddle showing, though some guitars have a taller bridge and shorter saddle. Check fret divots and height. Divots can be fret leveled out or a partial refret done. Rap on the top and back of the body to listen for loose braces. It has a distinctive not secure sound. Check relief. If you can't tell by sight (experience thing), take a capo, place it at the first fret, press the 14th fret and take a feeler gauge to the middle. As long as it's less than .012 or so, the rod should take care of things. The bridge could have been sanded down too, also an experience thing.
To me that price seems reasonable with a $500 slush fund for issues. It is a crap shoot if guitar plays great now but is boarderline for work. Might be good for ten years, or ten minutes. It is worth having that vintage though, so I'd be good with a total outlay of $1500. After all. I have $1400 in my D 35.