This looks like a great bike in good condition. However, I think its a little overpriced.... Would it be reasonable to offer about $800? Any ideas?

http://peoria.craigslist.org/mcy/2269579499.html

Based on Seattle area prices, not too bad if everything is OK and it runs good. Around here good running GS500's are anywhere from $800 to $1200.
Go see the bike and start at $800. Then base your best price on how the bike looks and how well it runs - both cold and hot.
I bought Trey for $1000 (I think asking was $1200) and Junior for $1100 (I think asking started at $1300 or $1400). Both were good running bikes and didn't require any serious work. Though I have done extensive cosmetic work on Junior, the only real requirement was just a normal tune up and new tires. The rear tire was too worn and stiff so it tended to skid on out wet streets when coming to a hard stop. Trey got new tires, too, because he had tires that were too big. Just my preference for good tires since tires and brakes are probably the two most important things on a bike when it comes to riding safely.
So check it out. If it looks good and reliable, $1000 is not a problem for a good running GS. $1200 is the asking price. Get any service records available so you know the rebuild work on the forks and carbs.

I paid $950 for my 1995 out of indiana. He ws asking 1500, but we worked out a deal where he knocked off what the shipping would be for a sprintcar fram he bought from someone here in La. I was spending the same gas, so it worked for me. $1200 seema a fair price if its in good shape and runs well.

i paid a 1000 for a 91 with 9500 miles on it needed bout 300 in work and i was happy with it

paid 1500 for my 2005. good to have buddies that need the cash