Unless the barrel is numbered to the gun and is properly proofed, it most likely is a replacement. Even if it is numbered, it does not fit the specs for a navy. I don't believe the Luger ever was an Olympic pistol, and I doubt that the navy sights would have provided the precision required at that level of competition.
As far as having an impact on the price of a naval model, you aren't going to be able to touch a Navy in beautiful condition for anywhere near $1800, so the owner has priced it as non-original. As the more intelligent Ron has stated, it is a mite high but not out of reason. If it sings to you and you can afford it...go for it.
P.S. If you do get it, how about some pics. It sounds like a neat gun and should be a terrific shooter.
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If it's made after 1918...it's a reproduction
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