i am no expert, so someone else correct any misinformation in this...
that seems too high considering the condition to me. i bought a running (at least supposedly, it does turn) one for $900 and there are better deals than that out there. that was just a fair price.
from what i have learned, that is a good year to have if you are going to run stock or mild, at least if it is a 914 engine. the 1.8s are better if you are going to go wild. mostly due to the heads. find out the engine code and match it to the chart in the link below to get more info. hp can run between 75-100 in stock form.
http://tunacan.net/t4/reference/case.htm