400 V8. Looks like it has been sitting (indoors) a long time. https://minneapolis.craigslist.org/ank/cto/4991715110.html
Rust free is good. It needs to run to be worth the asking price. Seller needs to put a little more info in the ad and pump up the tires. Can't say I'd mind having one of these.
I would say he is high on the price for the condition. This looks more like a $1,500 wagon to me. I would love it, but don't have anywhere to do the work it will need.