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The middle section of the display is not lighting up. I would verify FM actually plays in stereo. Check channels are balanced. From there it's your call.
Also in the craigslist ad it looks like the Speaker A button is depressed but the lamp is out. Common for indicator lights to be out in this series I believe.
I agree, there are some blue lights out that say "quartz locked FM stereo" in the center. There is also a red light that comes on when it tunes in stereo. Maybe the seller is referring to the blue lights? I have one that i use in a bedroom and I like it.
If it sounds like the 3800 I had, it's a good deal. It had a more 'modern' sound than the previous generations of pioneer gear I've had or heard, but that's not a bad thing. Just different. For $35, it seems like a pretty good deal if the tuner is working.