I "think" he had it listed for $20,999 so let's say $21 which was way too high. I agree the current price is pretty much bang on, especially considering the lower mileage and the fact any other car of that vintage and price was a US import and higher miles. Other than the color combo he should get some action on it now.
Good point by Athal on the shocks, I never thought of that either and I imagine they are pricey for that 4C suspension. I could see dropping well over $1K easy to have that done if you consider Bils for a 2/7/9 are over $500 just for the struts/shocks. As far as offering $11K... well all he can do is say no.
ETA: While I was typing this Athal was posting about the shock(ing) prices of R replacements. I was going to say $2K but thought it would sound stupid... guess not.
As far as color choices I would pick the Sonic Blue first by a mile, although when it comes to R shopping it can take a loooong time to get a good car and in the color's you want. This one is pretty weird for colors, but it's an R wagon not a Corolla so whatever. My favorite V70R is still a 98 Saffron, but you won't find a stick unless someone did a swap.
It's also probably a FWD car by now as well.
If I was working and money wasn't as big a deal I would buy this car, or already own one. The reality of owning one of these cars is that they take a lot of care and feeding, especially if driven as they were intended. Beyond the shocks as Athal mentioned the rest of the suspension is like any other Volvo, they eat bushings for breakfast. Throw in the angle drive and the fact he had to have the clutch slave done already and my left brain is running screaming out the door. My right brain continues to drool in spite of all the logic...
Bottomline, for me at least, is these cars are fine if you can write the checks without flinching no matter the amount or how often.