Don't be scared of a high time engine, but look at it this way...take current asking price plus a new engine...then see what plane that budget would buy you currently with a low time engine. If you are in the ballpark of what you are looking at, go for it. If you can get a substantially nicer plane with a newer engine...might not be such a good deal.
I just bought a plane with almost 500 hours over TBO (although it did have some engine work done) but when I added the purchase price PLUS a new engine I still wasn't finding anything as nice or equipped in that price range, so I pulled the trigger knowing I will have a rebuild in the near future but have a zero time engine and the plane I want.