The iron might be good too.
I'd offer $4-5.
Even 9-10 years ago I would encounter people selling planes in such condition for $50 or so. The right thing to do is to just make an offer for what it's actually worth: a few bucks. Just because something has a price tag on it doesn't mean it will ever sell at that price, so bid appropriately and educate the seller if he asks why so low. I've done this a few times on ebay with good results and gotten huge "discounts" on things that were obviously mispriced.