1973 Honda CB350: how much should I pay for one in running condition?

I'm about to purchase a 1973 Honda CB350 with 3,360 miles on it. The guy selling it wanted a ridiculous price of 2,250 and I talked him down to 1,600 so far. Now he just informed that it needs two brand new tires... so that puts the price to a realistic 1,800 dollars. My Friends and other people I know say that I shouldn't pay more than 1,200 for it. Does anyone have any feedback?
 
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