A galvy frame is only worth about $2000 tops in your neck of the woods. Of the other work listed (struts, springs, exhaust, tranny service, and a basic motor tune up), only the springs and "struts" are worth anything- somewhere in the range of $500-$1000, depending on how old and what brand/type). and judging by the paint not a whole lot has been done to the body. Basically the bulkhead is the main thing you should look at, although the door frames and other steel items can add up if they're all bad.
It might be worth it to take a look and offer $5000 (depending on the condition of the bulkhead) just to see what they say. They may giggle, but at least you gave it a shot. It sounds like this guy is trying to get a return on his investment or at least break even, which isn't likely when dealing with Series Rovers (or at least that's been my experience so far).