Sounds to me like you have a post fire Contender in excellent condition, although I am not as familiar with these later frames as with earlier ones. I don't think there are any problems especially noteworthy with these frames, although some seem to think them of somewhat lower quality than earlier frames. I wouldn't hesitate to buy and use one if I needed a frame; I just don't like the looks of that scratched in cougar. IHMO, unless you are a dealer who wants to make money, you shouldn't worry too much about how much you paid as long as it's in the ballpark, and I think yours is. It may be just a bit high, but it's in the ballpark. Besides, I don't see all that many used Contenders in my neck of the woods. Fundamentally, guns are worth what the seller and buyer agree on at the time. Shoot your Contender a lot; then the enjoyment will outweigh a few bucks you might have saved if you had haggled more. Of course, if you had haggled more you might have ticked the guy off and you wouldn't have a Contender now.
My half nickel.
RonF