Buying 97 impreza outback sport

Hey all, I am thinking about buying a 97 impreza outback sport. The car has 170k miles on it, with one owner and he has been taking it regularly to the subaru dealer for maintenance. It has no defects of any kind except sometimes the reverse lights dont come on. He wants $3,995 I was thinking of offering $3,500 and about $3,200 if the tires arent good. Does that sounds allright to you? any suggestions would be great thanks