Most of these suggestions require the phone to be on, so I would request the seller bring the phone that is charged up a bit. Also, bring a pair of headphones to test the headphone jack, preferably ones with a mic so you can test the mic in the headphone jack. A pair comes with every iPhone, so the seller might have a pair you can use just to verify the port.
I think the suggestions about having the seller wait with you while you activate the phone is a good idea, just to make sure he's not selling you a phone that is locked to his or her carrier (which probably requires them to talk to their carrier before it can be unlocked).
iCloud Activation Lock
Like others have said, probably the most important thing to check is whether iCloud Activation Lock aka Find My iPhone is turned off. If turned on, the device will be unusable to anyone who doesn't have the original user's Apple ID and password. To turn it off, go into Settings -> iCloud -> Towards the bottom, make sure "Find My iPhone" is set to off. If it is on, turning it off will be as simple as entering a password. While you're on that screen, scroll to the top and delete any iCloud account associated with the phone so you aren't getting any of the seller's data.
If the seller restored the phone (reset to factory conditions) this will NOT remove the iCloud activation lock on its own. You'll know if the phone is reset if it has a white background on the lock screen and instead of "slide to unlock" it says something like "slide to set up". If this is the case, follow the prompts, and opt to skip on setting up wifi/putting in your apple ID/everything etc. for now, as you can do it later. At some point during the quick set up, I'm sure it'll ask for the Apple ID of the seller if the activation lock is enabled. Entering it will allow you to finish setting up the phone, and you'll still need to go into settings and turn it off like I described above.
If you want to independently verify that Activation lock is off, go to https://www.icloud.com/activationlock/ and enter the IMEI of the phone which you can find on the back of the device, or in Settings -> General -> About.
Hardware
If buying a device off craigslist, I'd want to check all the hardware and make sure nothing is broken. On the left side, check the two volume buttons and the silent/ringer hardware toggle. On the top, make sure the sleep/wake button works. If the phone hasn't seen use for several months, the home button may not respond on the very first press, which is normal. It should respond by the 5th press or so max, and I find that this problem goes away after a day's worth of use.
Sidenote, every app I mention to help test hardware comes standard on iOS. If you can't find them, pull down on the home screen to bring up a search.
Model
Verify you're looking at a 5S and not a 5. They are nearly identical in appearance except for the home button. Here is a comparison of the two home buttons. The 5S is the top phone with the silver ring and the blank button, while the 5 has the square on the home button. Also, the 5S will show a "Touch ID and Passcode" section in the top level of Settings instead of just "Passcode".
Also, verify that the phone's storage capacity is as advertised. The 5S doesn't externally display storage capacity, and it is not user upgradeable. Settings -> General -> About, capacity will show the phone's size after OS.
Headphone Jack
This assumes you have headphones to test the jack, which I recommend testing as I've seen kids break either the L or R part of the port from ripping headphones out roughly one too many times. First, go to Settings -> General -> Accessibility, and under hearing turn "Mono Audio" OFF, so you can test both sides. As for the actual test, I think the music app comes with one or two songs you can use to test, otherwise change the ringtone in Settings -> Sounds. For some reason changing my ringtone with headphones plugged in made sound come out of both headphones and the bottom speaker, just be aware of that, and I guess also use it as an opportunity to test that speaker.
Mic/Speaker
Record yourself using the voice memos app, then play back through the speaker. On the holes on the bottom of the phone, one side is a mic and the other is a speaker.
If you have headphones with a mic, repeat that to test the headphone jack's mic.
When playing back the voice memos recording, there is an icon in the upper right that looks like a volume icon which you can use to switch the sound's output between the speaker on the bottom of the phone and the phone/ear speaker above the screen.
Cameras
Open the camera app and make sure the front and back camera work, as well as the camera flash.
Firmware
If you're planning on jailbreaking/rooting the phone, you'll want one that is currently on certain iOS versions. You can't downgrade your iOS version (for the most part on a 5S), and you can only upgrade to the newest iOS version (9.1) which is currently not jail breakable, so if that matters to you that is something to check. Settings -> General -> About, look to se what version number the phone is on. To see if that version is jail breakable, visit canijailbreak.com .
SOURCE
I think the suggestions about having the seller wait with you while you activate the phone is a good idea, just to make sure he's not selling you a phone that is locked to his or her carrier (which probably requires them to talk to their carrier before it can be unlocked).
iCloud Activation Lock
Like others have said, probably the most important thing to check is whether iCloud Activation Lock aka Find My iPhone is turned off. If turned on, the device will be unusable to anyone who doesn't have the original user's Apple ID and password. To turn it off, go into Settings -> iCloud -> Towards the bottom, make sure "Find My iPhone" is set to off. If it is on, turning it off will be as simple as entering a password. While you're on that screen, scroll to the top and delete any iCloud account associated with the phone so you aren't getting any of the seller's data.
If the seller restored the phone (reset to factory conditions) this will NOT remove the iCloud activation lock on its own. You'll know if the phone is reset if it has a white background on the lock screen and instead of "slide to unlock" it says something like "slide to set up". If this is the case, follow the prompts, and opt to skip on setting up wifi/putting in your apple ID/everything etc. for now, as you can do it later. At some point during the quick set up, I'm sure it'll ask for the Apple ID of the seller if the activation lock is enabled. Entering it will allow you to finish setting up the phone, and you'll still need to go into settings and turn it off like I described above.
If you want to independently verify that Activation lock is off, go to https://www.icloud.com/activationlock/ and enter the IMEI of the phone which you can find on the back of the device, or in Settings -> General -> About.
Hardware
If buying a device off craigslist, I'd want to check all the hardware and make sure nothing is broken. On the left side, check the two volume buttons and the silent/ringer hardware toggle. On the top, make sure the sleep/wake button works. If the phone hasn't seen use for several months, the home button may not respond on the very first press, which is normal. It should respond by the 5th press or so max, and I find that this problem goes away after a day's worth of use.
Sidenote, every app I mention to help test hardware comes standard on iOS. If you can't find them, pull down on the home screen to bring up a search.
Model
Verify you're looking at a 5S and not a 5. They are nearly identical in appearance except for the home button. Here is a comparison of the two home buttons. The 5S is the top phone with the silver ring and the blank button, while the 5 has the square on the home button. Also, the 5S will show a "Touch ID and Passcode" section in the top level of Settings instead of just "Passcode".
Also, verify that the phone's storage capacity is as advertised. The 5S doesn't externally display storage capacity, and it is not user upgradeable. Settings -> General -> About, capacity will show the phone's size after OS.
Headphone Jack
This assumes you have headphones to test the jack, which I recommend testing as I've seen kids break either the L or R part of the port from ripping headphones out roughly one too many times. First, go to Settings -> General -> Accessibility, and under hearing turn "Mono Audio" OFF, so you can test both sides. As for the actual test, I think the music app comes with one or two songs you can use to test, otherwise change the ringtone in Settings -> Sounds. For some reason changing my ringtone with headphones plugged in made sound come out of both headphones and the bottom speaker, just be aware of that, and I guess also use it as an opportunity to test that speaker.
Mic/Speaker
Record yourself using the voice memos app, then play back through the speaker. On the holes on the bottom of the phone, one side is a mic and the other is a speaker.
If you have headphones with a mic, repeat that to test the headphone jack's mic.
When playing back the voice memos recording, there is an icon in the upper right that looks like a volume icon which you can use to switch the sound's output between the speaker on the bottom of the phone and the phone/ear speaker above the screen.
Cameras
Open the camera app and make sure the front and back camera work, as well as the camera flash.
Firmware
If you're planning on jailbreaking/rooting the phone, you'll want one that is currently on certain iOS versions. You can't downgrade your iOS version (for the most part on a 5S), and you can only upgrade to the newest iOS version (9.1) which is currently not jail breakable, so if that matters to you that is something to check. Settings -> General -> About, look to se what version number the phone is on. To see if that version is jail breakable, visit canijailbreak.com .
SOURCE
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