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'95 is my favorite year for 850s... It has the OBDI diagnostic system instead of OBDII. No scanner needed, just a little diagnositc port that gives up codes via flashs of a little red LED. I bought my '95 five years ago with no records. Later got a carfax, turns out it had changed hands five times. The leather had been neglected and it's always used a little oil, but otherwise it's worked out fine.
If the rear main seal was replaced that indicates that there was a blockage in the crankcase ventilation system, a common ailment if not fastidiously maintained. If they didn't resolve those issues then a new seal will only fail again. Check underneath for oil drippage.
Timing belt, water pump and tie-rods are all normal wear items. Any car will eventually need them. The interval for timing belt replacement is 70K miles so it was due at 70 and 140K. If there is no record or sticker under the hood then it should be replaced ASAP. The 5-cyl is an interference engine. A broken belt means broken cylinder head.
The water pump is about due. Mine was weeping a small amount of coolant past the shaft at ~125K. Others have reported no problems till close to 200K. While you're under the car looking for oil leaks, look for split rubber boots on the ball joints, tie-rods and sway bar links. Even better listen for clunks and groans from the suspension while driving. Factor needed maintenance into your offer.
Make sure that the AC works. Adjust the power seat to make sure all functions work. A broken cable is common but fixable. Another bargaining chip.
Oh and on the V70XC AWD system -- you don't get to choose whether it's on or off. Its function is automatic and seamless. The only way to "turn it off" is to remove the driveshaft to the rear.
Good luck!
-Will
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1999 Volvo V70XC - run away from this thing, don't look back [XC][1999]