I also watch the greater LA area W123 market pretty regularly. My view is that prices have come down a lot over the past couple years since I bought mine. You still see some popping up at higher prices (high 4s/5s), but also some good-looking specimens in the high 2s/3s range.

If he'll come down on the price and everything else checks out, then jump on it. But otherwise, I think if you wait around a bit, you'll be able to find something just as good or better at a good price.