FWIW. Yes ... and, no ...
I would probably be willing to pay $200 for the particular Trek ... but, I'm partial to bikes with steel frames ...
- the bike has a pretty good steel frame -- I think that may have been one of the many Treks from that era which were made with TruTemper steel
- the particular components are more than good-enough
- and, it can be easily upgraded should you want to venture down THAT path in the future.
If you were to part-out the bike OR try to assemble a comparable bike from acquired parts, the sum would be more than $200 ...
If I lived in Tennessee, I would be heading to that guy's house with a fist full of dollars, ASAP.
- Presuming that you don't neglect the bike, the frame-and-fork will last as long as you want them to; and (as I stated) it can be readily updated-or-upgraded with newer-or-"better" components.
- And, in the future, you will probably use how the frame rides as a benchmark against which you will judge other bikes.
Of course, others may disagree with me.