Given that you've had a hard time finding a square deal on a replacement bike in San Diego (which is a hot market), I would not try to low ball the seller. This is a good bike at a fair price for your market. I'd buy this bike at the asking price.
It's a 1985 Trek 560 as per the catalog,
http://www.vintage-trek.com/images/t...TrekRacing.pdf
The 501 tubing is none too shabby (main triangle with a different chrome moly in the rear). The cyclone stuff is pretty hot; it was very well made and quite possibly the best shifting non-indexed derailleurs ever made.