What's this Interceptor worth?

There's an Interceptor that's been on craigslist for a little over a month now, first listed at $1200obo, then dropped to $1000obo. So I called him and gave it a test ride.
The Good: Runs and rides nice, everything i tried worked- although I just rode it and used the turn signals.
The Bad: REEAAALLLLLYYYY ugly paint- Rattle can flat black and flat/primer grey stripe, kickstand spring mount broke- it's held up with a zip tie and you have to use the center stand, front brake lever broke in half- only your index and middle fingers fit, rear brake lever seems like it's bent inward- hard to hit with my foot, left mirror is missing half the glass, right mirror assembly is missing completely, Most/all of the turn signals(they stick out about 3in) are bent and supported with zip ties, one lense is held on with packing tape.
Unsure: 20+ year old bike with around 20,000 miles.
I called him and made an offer of $550(super low ball, I know) and wanted to negociate from there. There was an '86 with mint bodywork and 7,000 miles on ebay a few weeks ago that finished around $1017 IIRC, so there's no way I'm paying that price for a beat-up example. He said he wouldn't go less than $800.
Here's the ad:
85 Honda Crotch Rocket
Is he crazy or am I due for a trip to the looney bin?:unsure:

 

I bought an 88 Yami 600 in roughly the same shape for 400 bucks. That was low ball for that bike, I sold it a couple months later for 500.
Your offer sounds right. The other bike sounds good, look into that one.

 

I don't know the bike market where you are, but I don't see that you could go very wrong on that bike for $800, if it's mechanically sound and has a clean title. Biggest expenses are tires, brakes, clutch and any damaged plastics. In pics, that bike looks like you could put a few hundred bucks in it, and a better "homebrew" paint job, and have a decent presentable bike.

 

Go to his house with $700 cash and the expectation of taking it home that day. The sight of cash is a good motivator.

 

1991 HONDA VFR750
1987 Honda VFR 700 F2 interceptor
1991 Honda VFR 750 Interceptor
1998 Honda VFR Awsome Bke 13,000 Miles
Here are a few local VFR's for sale & the price range of what they sell for around here.

 

canib can fix all those parts. if the engine is sound and runs good the rest is minor lockheart, targa will have unpainted body parts get them painted.. mirror, brake lever 40 bucks go carbon 50 if you like that bike you can fix it if your trying to make a profit good luck..I bet 700 you get it and put 300 in it and have a sweet ride for 1k.. you can't get anything good for 1k but this one could work out for you unless you don't know how to fix those small brackets etc.. Then save up more and get something that doesn't need work. you can't buy a cadillac on a kia budget...