Hi Alex,
Welcome to the forum! You indeed have an Erfurt Luger that has been rather unkindly buffed and reblued. The grips are either replacements or were so worn that somebody decided to sand them down smooth, (look for matching numbers on the inside to see if they are the gun's original grips). It should make an excellent shooter and if purchased for the right price, (give or take $650-$700), I would be happy to own this gun.
A re-checkering of the grips by one of the site's artisans would do wonders for this gun's overall "look".
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