I think $250 is the most I'd offer, and I think better deals can be found. Remember, he doesn't even have the chip tray, so that's $20-30 you have to factor in (after having one shipped to you). The velvet is crap, as BG already stated.
Tables are functional, beautiful, or both. I think this table may look good (not especially beautiful), but has some functionality issues. Dealer cutouts are cool, but suck unless you have a dedicated dealer all the time. Playing with a dealer tray and little/no rail in front of you is not pleasurable. That and the play surface issues would probably have me continuing the search...
As an example, There is a guy in the Chicagoland area who builds new tables with SSC and full felts for around $400-500 new, and his work is good. I think
@Jeff has used him and I've played these tables (they're nice). I say this to give you an idea of what a decent table can run. In looking at the pics in the CL you linked, I don't find the quality to be outstanding, but without closer pics, it's hard to judge. The mere fact the seller has a tray of dice chips he'd let go for $200 goes to show the table might be overvalued as well....