e30 FTW!! Keep at it - took me three tries to get just the right car, and I've already been through five e30s so far!
I'm thinking he's about $1500 too high, but that's me. I bought virtually the same car (mine is also red but had the tan vinyl comfort interior) 2 1/2 years ago for $800. But mine had some troubles - 266K miles, dead A/C, mild overheating and needed a new diff as well.
The sedan is great fun but keep in mind it's missing quite a few of the iS bits. Worse, the sedan was a one-year-only bargain-basement BMW in '91, so likely it sold from dealer stock with no options. You couldn't get one with an automatic, cruise control, premium sound nor the glass moonroof. The basketweave alu rims, leather seats, ski bag, rear headrests and the sport interior were also n/a from what I've seen. I'm also pretty sure 99% of them were either red, white or silver.
On the good side, that car is one of the rare 'slicktop' cars. They're sought after for rallying as the sunroof delete option drops a lot of weight (20 pounds or so) off the top of the car.