$800 is not outrageous, as sometimes these can be hard to find. Consider the issue of sales taxs, FFL transfer fees, any extra parts or ammo that can be thrown in to sweeten the deal. Hands on the gun is always better than photos over the 'net.
The photos are not great, but several spots do look rounded, suggesting buffing wheel contact. Some of the bluing looks spotty, sort of like cold bluing, but many of the Lugers of this era had "thin" bluing, so it's tough to be sure.
Maybe see if the owner will accompany you to a shooting range to see how it functions? Each time it jams knock $25 off the offer price...
dju
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