Yeah. Considering Dad's '78 Fairmont 2-door sedan with only the 6-cylinder and the rear-window defogger was $3300 new in late '77, that wagon shouldn't be worth what a zero-mile example would be worth.
Consider that back in 77-78 these could be ordered from any dealer. Now consider how many are in this shape and still for sale. I say the same thing under my breath when I see most vehicles like I've owned new or nearly new. The average car I bought was always well under $5000 new until I bought my Dodge truck in 2004. In the 70's my neighbor bought a new no frills Chevy pick up every other year for around $2500-$3000. Consider a new home could be bought for under $25,000 and a hambuger for 15 cents in 1977.
I can't help thinking that $12.5K is way high. Most cars in Hemmings are priced high -- maybe lots of negotiating room. True this is an exceptionally good condition, original, low mileage car. True, also, you couldn't buy a lesser example and put into this condition for the money. However, I don't see originality in Fairmonts (or 'their competition, the 78 - '83 "G" body GMs, for that matter) being highly prized. Rather, it seems to me that most people with these cars prefer them as platforms for performance mods. This car should be left totally original -- it's too nice as is. I would prefer a '79, because I like the deluxe steering wheel of that year better, but, if I had the money, I'd go to $8K on this (if it were as nice in "person" as it appears in the photos). I'd only go $12.5K if I were a mega millions lottery winner (I can dream).
It's just not a desirable car - especially with the blue paint and interior. If it had been any other color it might be worth $10K max. There's no room for it to appreciate in value.