I believe that locomotive was reviewed in OGRR Magazine, Run 269 (Feb/March of 2014). Nice review and even nicer model.
MSRP was indeed 1400 bucks.
The Third Rail runs are so small that it's hard to gauge what they "should" sell for on the secondary market. I'd say the price you've been given is a little high but certainly reasonable. Where can you find another and how long will it take to find it....if at all?
I'm torn on whether to start looking for a recent Third Rail C&O 614 and Great Northern S2 4-8-4..........