Look at the book prices for that year and miles, then look at the cost of replacing the damaged parts and see if he is in the right ballpark.
Also, check out this thread to look at more things to look at on the bike.
Looking at a 1999 800 tomorrow
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~Jason
San Diego Riders click here >>>>
San Diego County Area Riders (SCAR)
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1998 VFR800
Two Brothers CarbonFiber Slip-on
ZG Double Bubble
Oxford Hot grips
BMC Air filter
Thurn Motorsports Aluminum Chainguard
Knurled Aluminum Footpegs