I sold a very clean 1910 with cosmetically rough tiller, 2 WD w/ about 800hrs back 6-7 yrs ago for $3500 to a small water district in Missouri to use for light mowing and prep/reseeding after new lines they laid. The superintendent called me back several months later and said if I ever got another one, they wanted it! Nice torquey little machine, kind of light but easy on turf, even with the rear rice tires and probably my favorite 2 cylinder I've owned.
I think your asking price is fair for a mechanically sound machine, especially if it's clean. Small 2 cl. 2 WD drives just don't bring the same money as 3-4 cyl. 4 WD units but they still make great machines, especially when used primarily for PTO equipment like mowing, tilling, etc. I think you are in the right range given all factors and a quick online search found 2 similar machines w/ little details priced in the $2500 range.