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I'd pass unless he's selling it dirt cheap. It could be something simple, could also be something really expensive.
 
I could be the display or the graphics board or both. If something els eis wrong with it, could be the logicboard.

If it's really a 20" iMac, you're looking at an early 2009 system at the latest. If it's 21.5" it could be as new as mid 2011 and the remote could've been bought separately. The last iMac to bundle the remote was 2008.
 
If you plan on fixing it (assuming it's just a bad LCD), that part will probably cost around $200. Who knows what else is wrong with the mac though so my advice is to skip it and find something else that's in working condition.
 
Yup, gonna pass. I was hoping this could be something like a wire that comes loose or something easy like that.
 
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