I'm kind of scared to venture a guess without seeing the rest of it, but personally $700 would be a bit over the top for me, too. Probably worth $500 as a shooter project.
You can bead blast it and satin blue it, probably covering the small stuff with the matt finish, but without extensive metal work you will end up with a pitted shooter.
It would be interesting to see how much our Thor would guestimate a restoration at. It would be time consuming to full the pits, and work them back down before bluing. But if it is a matching BYF it may be worth $1500 plus once done. But it is definitely not easy money...
dju
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