If you can, take off the ignition cover and feel for play in the crank. My main bearing siezed soon after i got my '98, and was a very costly affair. Take a look at the filter, as its easy to get too. Check out the bottom of the fork legs. If they are really dinged up, then the bike has seen hard miles. If the chain looks pretty tight, then the wheel bearings/spacers are probably shot. The ktm needs more freeplay in the chain than jap bikes, and a too tight chain wears away at the rear spacers. The head-pipe on the 200 leaks pretty easily, so check that out also. If the bike is in good mechanical shape, then 3500 is a fair price. I got my '98 in Jan. of 2000, and paid 3k for it, but it had plenty of rough miles on it. Good luck, and good choice on bike and year.