Like I said, they tend to keep 'em up.
As for the price, yeah that is a little steep for an older car, but it's a BMW.
I found you another link that might help you make up your mind -
http://www.bmw4life.com/buyingE34.htm
Fro myself, if I had the $$$ I wouldn't turn my nose up at it as long as it's in good shape (not wrecked/rusted, runs good,etc),
but that's me.