Prices are "location specific". Lots of wore out, big, oil country, heavy iron in Texas (there's good stuff, too, but not what you usually find for sale), I have a son that lives there (Victoria&Ft Worth). Not so many "lightweight" South Bends, which may cause their prices to be higher in your area, than say, the northeast, or midwest.
What is the sellers definition of "reconditioned"? A steam clean and a paint job? Was it just taken apart and cleaned, and new lubricating felts installed? Are all screws (compound,crossfeed, and lead screw) and nuts, new, or like new? How about alignment and tolerance? I would want a chance to verify alignment and accuracy with a test bar, for that kind of money, again, prices for a South Bend might be higher in your area due to scarcity. How much tooling comes with it? All these need to be considered. 13 x 40 is a nice size toolroom lathe. Do a little home work on C-list, "the bay", and other classifieds in your area. Talk to a used machinery dealer in your area. Hope this offers some help. PB