suprising he didn't even go down on price, another reason why stuff in ny can seem spendy at first every one is a haggler, I used to sell guitars at the nyc show and I'd mark everything 2x what I'd normally sell it for, people never bought the stuff when I was selling it cheap,
I just spent over $300 on an old specialized touring bike I was looking around at frame prices and even if I went with the cheapest parts I'd never match the price. and now I have a really nice old bike instead of a cheap new one,
NY craigslist has ridiculous prices but people must pay or come close to paying them, but the price for new bikes in the city is so inflated by the high sales tax as well as the double taxation faced by business owners that to get a bike that's ridable now that I can pay for and maybe talk the guy down on will force more people to go the slightly cheaper route,
if you are looking for an older trek maybe print out a cheat sheat from vintage treks site so if you can't get to a computer you can double check the info,
sucks you went out to see it and he wouldn't play ball, but worst case you ride it for a few months then sell it for the same or a few bucks more,
what size was the frame?