Value is $600-800.
Commercial Lugers are generally not valued as highly as military proofed Lugers.
I bought one in outstanding condition a couple of years ago for $650.
If it's a 1920s era Commercial pistol it should have the stock lug on the back of the handstrap. Years ago, some people ground these off in fear of ATF interpretation of what was and was not Class III (Short barreled rifles). If this was ground off, it would put it at the lower end of the value range I suggested.
Without photos of the top, barrel, receiver, barrel and frame markings it's hard to tell exactly what this is.
So, you're possibly looking at either an uninformed or deceptive seller with a price that looks 2x to 2.5x more than it's worth.
Marc
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 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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