Definitely worth more than the price, but should also be worth it to you for your use. So check for accessories, too -- 3 and 4 jaw chucks, faceplate, driving dog, centers, fixed steady, toolpost, change gears. These can all add up to replace.
Check for excessive wear at headstock end of leadscrew. Wimpy tailstock might be a concern -- check to see if it is a replacement from another lathe, or original.
Tighten gibs near the headstock (where wear is greatest) for a close fit and run the carriages by hand cranking along the ways to check for binding to get an idea of how much wear there is. Check engagement of half nut and relative backlash. Look at chuck jaws for excessive wear or damage.
Good luck. If it checked out reasonably well, I'd buy it if it were near me, since the price is very low, and then figure out which lathe I wanted to keep afterwards. Luckily I don't live nearby, and don't have to make that decision!