Yeah that seems high for an unknown builder FAL, on the other hand the parts and receiver are likely valuable enough that going in and haggling some might be worth it.
My concerns would be how they timed the barrel- lathe, shaved, filed, or shims, and how the headspace is.
However, headspace on an FAL is easy as hell to change (within limits). New locking shoulder can be enough. I unfucked a batch of Century assembled STG’s by swapping around the (non-matching) bolts/carriers, and ended up only having to change out one LS in the end.
So if the barrel doesn’t look like it was totally fubar’d, it is probably a fixable situation if it isn’t within good headspace range already.
Stuff like under/over timing for the sights and gas tube can be a bit of an issue as well, but the design is pretty forgiving of amateur tinkerers overall.