Well, it needs paint for sure, it's missing the front valance, the carpet is pretty faded, and that steering wheel looks like the standard II wheel when most (if not all) Cobra IIs came with a 3-spoke sport steering wheel. So it'd definitely be a project even if it runs and drives.
I'd offer $1500 and haggle from there, I paid $1000 for a V8/automatic Ghia in better condition... but that IS a Cobra, so I'd offer a little more. If he counter-offers at anything less than $2500 I'd haggle a little more but probably buy it between $1500 and $2500.
Just make sure you check the gas tank and floorpans before you buy it, those are areas that are prone to rust, and see if he'll let you pour a couple of gallons of gas into the filler neck, most V8 IIs have a little 3 gallon auxillary tank above the main tank that you can't see, and a lot of them leak, you'll want to know if it does before you buy it.
__________________ 1976 Ford Mustang II Ghia: 302 with a 600cfm Edelbrock carb, Edelbrock Performer 289 intake, Dynomax Blackjack headers, 2.5" exhaust with Flowmaster Super 44s. RJS 11-gallon fuel cell, C4 tranny, chrome 16" pony wheels, fuzzy dice, brown vinyl half-top, and painted in the tackiest color ever (harvest gold, that's why I call it "The Goldenrod").
Also have a 2003 Dodge Ram (lightly modded daily driver/tow rig/office/dining room/home away from home/workshop... I call it "The Big Blue Dawg".) | 
Pricing question?? 
