Tim,
after looking at the picture of the front sight, I would assume that the condition of the gun is rather pitted. It isn't uncommon to see the front of the barrel pitted, but yours looks like the pitting might go beyond the front of the barrel. While I would agree with Pete that the gun would go for "about" $3000, all would depend on who is buying the gun. There are a lot of prime navy Lugers w/matching mags out there and yours isn't prime. Still, check all the serial marked parts to make sure that all numbers match. Also check the bore to see what its condition is. A bad bore can affect the price too. It is a crazy market out there and anything is possible right now.
Big Norm
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