Question on a Reichsbahn Marked Luger

[J. L. Lyon]

I'm being offered the following pistol for a price of $1200, and I'm trying to determine if the price is reasonable. The pistol is in 7.65 mm, with the toggle marked DWM. There is no grip safety. There is no date over the chamber. The serial number is 5859m and matching numbers are found on the barrel and toggle parts. The proof marks are crown over N. The front grip strip is marked RBDMg150 which Tom A. told me via a posting stands for Reichs Bahn Directorate, Magdeburg weapon 150 and that it is a rare pistol.
Finish on the pistol would rate between 95% to 98% with beautiful strawing on all the correct parts and grips that show no evidence of use. The magazine is wood bottomed with no numbers. One collector who saw the pistol indicated that the original date had been machined off and that the pistol was there a refinished pistol and worth no more that $600. Any comments would be appreciated.