Five grand is a lot for one of these. They don't go as high as a good 2002. If you are willing to spend this much, have the car checked very thoroughly by a competent mechanic. Anything the mechanic finds, deduct parts and labor expenses from the car's price. 528is are supposed to be great cars, altough the 80 and 81 are considered to be the better examples, primarily for having a 5-speed instead of the 4 and for having a better cylinder head (I think). You might use this consideration to negotiate as well. If this car is an automatic I would definitely not pay this much, as nice automatic 528is are a dime a dozen.
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