You guys would not believe (or maybe you would) the cost to refrubish a bike nowadays. Tires, tubes, and rim strips can cost $50 alone and I HAVE parted out bicycles because they needed tires and a chain...one was a very clean 1972 Firestone Warrior ladies bike. Everybody bitched and moaned when they saw or heard of it yet nobody wanted to pay me the amount of money it cost to fix it.
I didn't see the ad but is this bike has new tires, tubes, rim strips, shifter and brake cables, deraileur adjustments, etc it was actually a good deal. Depending on how much was done, it could have been practically new. I did a ton of work to a '77 Varsity and got $125 out of it. I turned a profit because I got it dirt cheap and did nearly all of the work myself.