Looks to be in good shape body wise, but price seems a little on the high side IMO. Not sure what their budget is.
Here are a few others:
Here is one for a bit more ($8250), but only 66k miles and 2 years newer.
https://southbend.craigslist.org/cto...734002249.html
Or, one that is 2 years older, 30k more miles, but $2500 less.
https://fortwayne.craigslist.org/ctd...736368805.html
As for what to look for... there really isn't that much. The 2nd gen Prius is nearly legendary in its reliability ratings and has been named by some outlets as 'the most reliable car in the US'. I honestly haven't done anything to my 2004 Prius besides replace a rear tail light, replace a spark plug that went bad at about 135k miles (original plugs), and replace the front wheel bearings. The front wheel bearings seem to go out around 120k. I've done them on my car as well as my in-laws 2006. Tell tale signs of a bad bearing are noise going around corners, but quiet/er when going straight. So, its pretty easy to tell when they're going.