Looks to me to be in better condition than the photos show. A good cleaning and some RenWax would do wonders (I'd have a lot of fun cleaning it and playing musical grips, as I have never been a big Sanderson grip fan). The McGivern front sight and the HBH are nice touches. As to a price, I have not been in the pre-war .357 market lately and I'm a sucker for long-tube .357 Magnums, so for $3.5K, I'd probably be all over that one.
Good Luck!!!