Can't edit original post so I'll add this in here..
To be a little more upfront and direct about what it needs:
Exterior wise ... I think all of the flaws are apparent in the pictures. The biggest thing is probably the driver's fender dent. The body is mostly much rust-free, rear quarters are very clean. The hood is a little dented/bent but will shut (shown being open though!)
Interior wise ... the seats don't have tears but should be cleaned. Both driver/passenger headrests don't operate properly (just click), I read it is a pretty common issue for E28s. The front door panels are included but currently not installed. The drivers seat backs are in the trunk. The drivers seat has a "lean" to it, as it leans to the right side of the car. I think the front speaker covers are cracked. The stereo/radio works but whenever you adjust the volume, it makes a loud "beep". Finally, the trunk is stuck shut - not sure if this is related to the central locking system, or if the lock itself is seized.
Mechanically .... the engine/trans run and shift fine. We had some problems with the fuel pump but after replacing it, it has been operating fine. The car has a limited slip diff. We replaced the muffler as well. Some of the hard brake lines and gas lines were rotten so we had to repair them. The calipers had seized, so we disassembled them, lubricated them, and painted them. They seem to brake well now, but the ABS isn't functioning right, and there is little initial braking when pressing the pedal. When you slam the brakes, it takes like 1/2 a second for them to respond, and then they brake very quickly. I think the master cylinder needs to be lubricated.
Electrical wise... the windows and sunroof were working, however when we were doing some of the other work, they stopped. We didn't investigate why. The central locking system is also not working.
I realize there are quite a few things to look into, however the car is in pretty good shape overall, not rotted out, and does run great. I am being as honest as possible in posting all of the issues. If someone bought this now, they could very easily have it all finished up in time for next season.