I like the 1894 a lot, but it is very, very common. And generally overvalued because of this. I think it is literally the most common sporting rifle in Canada, even after production has slowed to a trickle for so many years.
Of course value is relative: $1200 for a decent pre-64 1894 makes more sense to me than $700 for a Russian SKS or $800+ for a new 870. Now I'm not springing for any of these, but the truth is that if people are buying them at these prices, then that's how much they're worth right now.
I'd say even being a 32Spl, if it's all original and in good shape, the OP's prospect sounds like a very good price in the current market. I think somebody would probably be very happy to get it for that price.