I don't think AMG has any official MB in 1997... I think the only way to
know it is real AMG is the AMG door placard and verify with the factory.
Anyone can put AMG wheels on the car and add AMG badge on the trunk.
Strange sounding tires? Probably cheap tires...
If it is true AMG car, then the premium is probably worth it... but
otherwise for 1997 E320, the price sounds a bit high.
If it has factory HID, that is a good bonus... otherwise, I'd be skeptical.