Sounds a bit steep. Looking on KBB.com, a 95 VTEC with 120k miles in good condition is worth $2,645 and $3,050 for excellent condition. This isn't very suprising given 4th gen VTEC's are somewhat rare and notoriously overpriced. The '95 model is the best out of the 4th gen VTEC's to go with IMO due to OBD1 still being used.
Anyhow, if you can talk them down on the price and want to go for it, here is a checklist to printout and use specifically for preludes. It's pretty extensive.
http://www.absoluteprelude.com/Checklist.pdf
Good luck.