If most everything works, I would pick it up. But depends on what your plans are next....do you want to use it or restore it? If use it, you could sink some extra $$ into it but if restore it, its gonna take a lot of $$. I always check out the high dollar items on a tractor, engine, hydro, etc...then note how many nickel and dime things you would need to replace to make it usable.
I didn't really know what my plans were, first thought was to restore and sell, second thought was to hang my 54 blade and some AG's. However I just got home from looking at it, and the trailer is still empty. The owner was willing to take 175 minus the engine. This thing was a mess, had been sitting outside for a year with no front wheel on, the spindle was buried in the ground. Majority of the wiring harness was gone, no gas tank. A very large portion was torched out of the frame for a oil filter to run. The motor that was just sitting in there, had no air cleaner on it, carb completely rusted. Hydraulics were tapped into, two lines ran up to the front right tire, and a lift cylinder was attached, just hanging there, I have no idea what they had in mind. Tires were rotted, hood was no good, The plastic dash was cracked, and he kept stressing on how the transmission was still good. Hmmmm sure it is. Sure was sad to see a once nice tractor sitting like that.
Its sad to hear of a machine that was poorly taken care of, neglected. I too would have walked away. I buy them and either restore to make usable or full restore to fund my next Deere project. That one sounds like it would have been nothing but a non-usable money pit.
Good luck on finding your project! Its out there somewhere!!