Welcome Mark, glad you found the Forum. For a matched unit marked 1908 Imperial the price is acceptable but this depends on condition. Ron Wood and Jan Still are the resident pros in this arena. I had access to a 1911 Erfurt not unit marked in 50% condition for $585 and the consenus was $500 tops. The improvement in condition plus the date of manufacture plus the unit markings will add to the value of the one referenced. So what I'm saying is send the guy a money order asap. You want it, it has more verifiable history than most Lugers around, it fits your (and my) historical interests, the price to me isn't exorboriant, and when we die will be dead for a real long time. And most importantly, you'll never forgive yourself if you pass it up.
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RK