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Buy it, you'll love the comfort, quiet and luxury compared to a 123 wagon. These are really nice. That year was the first I believe for the aluminum head. They were prone to head gasket failure. Check to see if this one has been replaced. Also, if it is a 4-matic, they can be expensive and unreliable. ( I don't know if they even made a 4-matic in '92)
Other than that, it you will love it, I'd offer $12,500 and meet somewhere in the middle. BTW, wagons seem to hold their value better than sedans. Finally, I think E stands for Estate.
Good luck,
Bill
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Mr. BILL
91 300E 120K
90 300SE 275K (sold)
92 BMW 525iM 120K
90 BMW 525iA 175K
85 300D 175K (sold)
84 300SD 245K (sold)
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