Can you post a few more photos? That will help us give you a better estimate.
Right here down in the "for sale" column is a very good place to start once an asking price has been reached.
As for the pawn shop quote, yes it is a bit low, but we can't say how low without more photos.
I hope you will think long and hard about selling Grand Dad's Luger for something more modern that is more comfortable to shoot. The remorse may be a few years out but it will come.
The only thing you should do to it is to maintain it so it does not rust. Do not attempt to improve its condition.
Selling to an individual is governed by your State/Local regs, so someone from NC could probably answer that better.
And my fingers are tired...
dju
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