Most of the rust repair needs can be fixed, but if enough repairs needed it can take something someone wants 7K for down to 2 or 3K or somewhere in between. Paint looks like someone painted the hood with Tremclad or Rustolem (maybe from a rattle can) and painted the fenders to match. They forgot to put the rear fender molding back on both fenders. Driver front corner is probably the fender support bracket is missing or bent.
I would go look at it, get pics of the underside (even laying on the ground shooting under). For me, first areas are on floor pan to look are driver rear seat bolts (I have seen many cars where the pan cracks at the rear bolts), check where the pan transitions to the rear cross support (pan goes vertical to rear seat bottom), drive side toe board under the pedals. Check underside lip of hatch as Mike said, lift the carpet in hatch area and check tire well, where floor pan attaches to tail light panel. Check rear frame rails (top and bottom) from
suspension mount point to rear. Check up underneath behind bumper between gas tank and rear bumper.
I agree the black console in a red interior gets me thinking cobbled together. What's hiding under the console or dash area? The rest looks okay. How is the headliner? That intake looks like someone's homemade version of some of the fabricated upper intakes out there. Those box style intakes were more for boosted and high RPM applications. Get a pic from the driver side of engine and we might be able to figure out what the lower intake is and if it truly has 24 lb injectors.
I agree with Mike that price should be 4-5K or lower if any issues in areas I mentioned. It doesn't mean its a car destined to be scrapped but it will cost more to get to a 7K valued car.
Other things that bug me about the car, the smaller width tire on those rims looks like crap - the rims I like, just not tire selection. The alternator looks like a 95A version of 3G style and the tensioner bracket looks hacked because they didn't want to fit the alternator properly with stock tensioner. The cooling fan shroud is missing, so expect cooling issues until that gets fixed. Hood hinges are half removed. There is some electrical add-ons going on on the driver side strut tower.