I normally look on GB for my price check. There is a shooter one exactly like that for $629. Now, realize there is wear and tear (hence a shooter). There is one in excellent condition for $869.
I love S&W 1911s. If I were looking to add one to my "look but don't touch" collection, I'd probably try to snag it for $850.
I think the seller's price point is at the upper upper end of the value of that gun. However, what does $200 matter if you REALLY want the gun. Everyone one this forum has honestly overpaid for a gun at some point.