Yes, it's a luxo XJ, and could be a really nice one. On a wagoneer, if it's been in rust country, check carefully for rust lurking underneath the vinyl covering. Sometimes you can get serious rust and it won't show up until it's so bad the vinyl tears, and suddenly you have a huge hole. It may be no issue down south, but it's still a good idea to kind of sound out the vinyl covered panels.
Otherwise, pretty much the same things to look out for as on any Xj, or any vehicle for that matter. Rust, wear and tear, leaks, etc. Expect a few things at that age and that price. I would not worry too much about minor front end wear, bad radiator, etc. if the vehicle is basically good. The 4.0 and the AW4 automatic tranny are tough as nails if well cared for, and if the body is good, everything else can be fixed anyway. $950 is a pretty good price for anything that's in sound running order and not bent up or rotten. I think the only real difference between a Wagoneer and the top line of regular Cherokees is the lights. For some reason they used all-red taillights and dual headlights.
Since the Wagoneer has all the bells and whistles, you might want to look carefully at things like whether the power seats are working, power windows, etc. The power seats on those can be expensive to fix, and some of those other power doodads might be finicky.
Look underneath and see if you can identify the rear axle type. If the thing had a tow package, 87 is a prime year for the highly desirable Dana 44 rear axle.