Re: Looking at a sunk boat project(freshwater)
For what it's worth comparison-wise, I sold a sunk 1996 SeaRay 170 w/ 3.0 Mercruiser to a buddy for $1000 including a good trailer. That was two years ago.
He spent another few hundred fixing it up again. However, that was after it was pulled out of the water immediately, drained, given several oil changes, run for awhile, given another oil change then put under cover until he could take her away. He got it running great with nothing more than disassembly of all electrical components and instruments for cleaning, a new bilge pump, starter and blower. The biggest pita was taking apart all the seats and upholstered interior bits, drying out the foam and reassembling everything again. He did a great job though.
Post salvage pics...
Anyway, my take is he's asking way too much for what you're getting. Granted it's a bigger boat with more motor but the condition it was left in before you got it could well have done more damage than the sinking (as others have stated). IF he could prove the motor is still good I'd offer no higher than the grand I charged and see what he says.