Sounds like your in the same boat as me...like the sports car, but dont see the need for the turbo or lack of gas milage that comes with it. I dont really know that much about the market value of Mk4's but it sounds like a reasonable price from what I've looked at. Its really hard to say because every local area is different. In Oregon that would be a good price if it truely is in good condition.
Make sure you take into account major costs if it has any. For example new tires can run upwards of $800 for a set. If the leather needs replacing that can be $800 or more as well. Cracked windshield, or other glass replacements are pricey too.
If the paint is shiney, there is no rust noticable, the tires are good and the leather is at least livable...I would say its a fair price!
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