If you need that much seatpost showing, that frame is too small. That looks like a 14 or 15 incher. If you're about 5'10" you need an 18" frame.
If the bike shop has put on new cables and overhauled the wheel bearings $175 is a fair price. I sometimes find them for very little $$, but they need work and consumables. And I'd be selling for more than $175. Here is my upgraded 1993 multitrack 700.
