To me, it sounds like a pretty fair trade. However, I'd have a knowledgeable tractor guy, even specifically a LS knowledgeable mechanic certify that tractor by giving it a complete once over. If it checks out as good, you'll feel better about this trade. TLBs don't come cheap. Does the backhoe match?
LS is the maker of that re-badged Montana. Mitsubishi engine. LS is the builder for many compact tractors that have gotten re-badged by McCormick, Montana and now, even New Holland.
My theory is that you'd have to take $1000 less on a typical offer and so would he, so you'd both be even on that score. You can shop TractorHouse.com to find comparable prices on the tractor.