Hi,
Congratulations, and welcome to the forum!
You asked about finish condition and how things get that way...
Your gun was originally rust blued (an older, slower, more expensive process than the more common hot bluing done with salts). It's about 90 years old. In that time, it's probably been cleaned many times, carried in some kind of holster and used well.
It's also possible that someone tried to deal with rust and pitting (some is visible on top of the receiver) by using naval jelly, iron out or a similar oxide reducing chemical. Since bluing is an oxide of iron (a different one FeO3 rather than FeO2 which is common rust) both the rust and bluing would disappear.
So, as they say, it is what it is...
I agree with Jerry's estimate. You have an all original (not messed with) matching Luger. Collectors prefer Lugers that are as close as possible to the way they originally left the factory. Should .30 cal DWM 1920s commercial Lugers rise in value in the future, you would probably eliminate collector interest by refinishing it.
I think that Jerry's valuation may be a bit generous, and would price it at the lower end of that scale due to finish condition.
If you've read much in the forum here, you know that it's hard to stop at just one Luger. Welcome to the addiction!
Marc
__________________
 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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