That should be a great compressor for a home shop. I just rebuilt a 1996 craftsman 6hp 60 gal 220v (the red model, not professional) for my garage. My dad bought the compressor from a dentist office for $50. It was also from craigs list. This one would not pump up, and the air could be felt blowing by the seals. I spent $108 for 2 rebuild kits (one for each cylinder) a fan, and 2 filters. The kits I used had chrome sleeves also. It took me an hour or so to rebuild and it was the first time I had done one. Now it works like new. I can run my IR die grinder non-stop and the pressure does not drop below 90psi. My compressor is rated at 11.5 cfm at 90 psi. I looked at new compressors that were this size. They average about $700 and many of the 60 gal units are only 10.2 cfm.
The price seems fair, go lower if possible, and find out if they replaced the piston rods also. My rebuild kits came with the new rods, which contain the bearings that would wear out over time. It is possibe that they only ordered seals and cylinder sleves. I would prabably buy it, especialy if they come down on the price. It is an oil-free compressor, and will be very loud. Some people say that oil lube is the only way to go, but I have seen many oil-free ones last a very long time including the 4.5 gallon Porter Cable that I use all of the time. Oil lube is usually quieter. The craftsman was easy to repair myself, but my friend said the oil lube compressor he rebuilt was more involved ( honing the cylinders etc.)
Sorry for the long post. if you have any questions send me a message.
Chris