I don't know how prices go in your area but that seems like $1000 too high for a '97 with those miles. Other than that check underneath for any rust and take it out, mash the gas and see how it shifts. That's how I test cars trying to scare the owner if he/she rides shotgun.
Look for rust. That's a nice looking Rav though and its 4wd. $4K does seem a bit high for that many miles. Maybe $3k to $3,500 sounds about right. My 2000 Rav4 has over 214K miles and I haven't changed the timing belt/water pump yet nor do I do regular oil changes and the car still runs fine. It's almost bullet-proof. They're such good cars that I am looking to buy another one but, a 2-door version.
In all the years I've have mine, the only major issue was the master head cylinder which controls the breaks needed to be replaced. So, you should check to see if the brake/hydaulic pressure is still good.
Picked it up Saturday. Paid $3800 for it. More than what I wanted to but there are none with repair documents within 120 miles of me so I guess I look at it like a convenience fee of sorts. Stacks of maintenance paperwork. 3rd TB/WP, all seals done, EGR, PS seals and lines replaced, rear wheel bearing replaced, fluids are bright and beautiful. Drives like I RAV I assume, little bumpy and not a ton of power but cruises at 80 no problem. Grabbed for my daughter and she loves it bad. Detailing the like new interior this week and eliminating all of the rattles inherent in the back plastic door compartments.
Don't see any differential maintenance done. How often do these need looked at? Curious since it's AWD. Looking forward to some adventures another 100K!