I wouldn't expect more than $350 for that bike, no matter what you did to it. If you wont take less than $500 you're probably going to sit on it a long time or be stuck with it. When I sell a bike I expect no more than half of retail regardless of what I list it for unless it's a special circumstance or particularly desirable bike. The other time this makes sense is with high end gear that's gently used and resold (like a saddle that doesn't fit me). As far as riding on a campus, I'd budget for two bikes, one nice and one from a bike co-op. Don't spend more than $50 on the second one, and use it for commuting. Since it will get stolen if you don't take it with you, it shouldn't be particularly valuable.