I'd throw on some bar tape and sell it as is. If the buyer wants to attempt a clean fill and touch-up job on the paint, anything quick and easy that you do to cover it will make that harder. If buyer wants a quick and easy cover to protect the steel, they can do that themselves. If the buyer is happy to leave it as is, they'll have a great bike with no time wasted on anyone's part.
I really think that should bring $100 in the PDX market with no problem. It's a functional bike in good shape (apart from the paint). That ought to be worth $100 anywhere.