You wrote that you purchased it. Are your questions just trying to reduce your dissonance over having bought it, or are you trying to get a resonable price to pay the friend?

I believe the prices are spot on you were given here. You wrote that the bluing was decent with rust spots on the cylinder. $700 would be a reasonable price without knowing more.
How is the barrel? the trigger? the lockup? B/C gap? forcing cone? grips? crane fit?

The 27 is a seriously great gun. If the internals are good, you can get your money out in a flash. Prices appear to be going up.

Prescut