Your question indicates that you aren't familiar with metal lathes. These are ok for someone that wants to learn the basics of machining on using high speed tooling even they are limited in size capacity, speed and power. If the lathe was in good condition, it would be a good price, but there are far too many of these out there to pay that much for a rebuild project. If you are looking at taking up machining as a hobby, enroll in an evening class at a local college if they are available. Once you have a better idea of what can be done on a modern student lathe, if you are planning on doing any work on harder metals such as s/s you may want to look for something more robust. If you only want to tinker in your basement, then I am sure you can find one in good condition for less. I wouldn't buy one without seeing it in person though.
