I've got a vague idea of who owned it (I'm fairly sure it used to have an R32 steering wheel on it that I had arranged to buy once it was pulled off the car, but the seller dropped off the face of the earth), but not enough info to say one way or the other based on knowledge of this car in particular.
I will say though that right now, it really is a buyer's market out there - used car prices have dropped considerably lately, and if you have any serious concerns about a car, the smartest thing to do right now is to walk away and find another - there's plenty of cars on the market.
Regarding price, I'd have to say that $16k is probably a bit high for a GTI these days, particularly considering the fact that by and large, mods don't add value to the sale price of a second hand car (except in rare circumstances) - this is why a lot of people strip modded cars back to stock before selling them and then sell the mods separately.
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