It looks a bit steep at first sight, but then you realise that it comes with panniers etc, and is virtually new according to the description. They are on some dealers' sites discounted to the £950 he quotes.
I don't know how easy it would be to get to Taunton from where you are (I suspect not too bad!), but if were buying a bike in that price bracket I would want to see for myself what I was bidding on.
From watching various bikes on
Ebay, putting a high starting price means that he won't get any speculative bids, if any at all. He's determined not to lose too much money on it, and he's honest enough to tell you it cost him £950, not claim the £1200 RRP the 2008 was in at.
However rare they are, it's a used bike, and what he's asking is high. If you're prepared to pay it, and do without warranty, or LBS goodwill backup, then go for it, but watch until the last minute and bid late. I wouldn't want to pay much over the £700 personally.