loki.fish... you're new to the forum, remove that link to the active auction, it's against forum rules and you risk getting dinged by a moderator.
Having said that, I looked at that gun. There is nothing wrong with it, that "chip" looks more like the edge of the cylinder caught the edge of the barrel when it was closed.... most likely resulting from the gun was being held muzzle down and flipping the cylinder closed via the Hollywood "wrist flip", which is NEVER a good idea to do on a S&W revolver.
When you mentioned a chip, I envisioned something much larger, that's more cosmetic than anything that would materially affect the performance of the gun.
The $395 starting price is decent, and I would not be reluctant to go as high as $600 on it, based on the condition that I can see in the pics, the
-4 version is considered the best version number made.
Ironic the seller is in California, but specifically states "NO California Sales". But it's understandable, when one knows how complicated our CA handgun sale laws are, with what can and what cannot be sold here and all of the in's and out's that govern it.