Not sure what "needs DMV fees" means. Sounds like maybe he thinks the seller will be held responsible for overdu fees or violations he's accrued? Make sure you fill out all the right paperwork and that the title is clear.
In CA the SELLER is responsible for the smog cert. This is so that the buyer doesn't find out the car needs $2k in repair to make it pass smog etc.
I know you want to hear that after you buy this car for $1000 you can spend the next $1000 on awesome performance parts, but in reality there are some critical items you should fix, maintain, repair, replace.
Mileage is sort of high. I'd suspect there are a lot of worn out items he doesn;t want to replace.
Timingchain, cam gears, crank gear, idler gear, gasket sets, fluid replacements, hose replacements, vacuum line replacements, fuel line replacement, water pump, thermostat, coolant flush, brake rotors and pads, tires, struts and shocks, bushings, control arms, interior odds and ends, plugs, wires, coils, battery etc...
It all depends on how reliable you need the car to be and how well it was taken care of and maintained.