I know that eBay seller, has been a nice bloke whenever I've dealt with him, his main business is supplying/maintaining machine tools for schools and colleges.
That said, there's no way that mill is worth just shy of a grand!
On the second hand market you could (with patience) get a decent full sized mill for that money, or as other posters have said on the new market you could have a far eastern mill of a similar size to that EMCO.
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If you do fancy that particular mill (it wouldn't be for me, but we all have different requirements) and it re-appears on eBay I would suggest contacting the seller and asking if he's open to negotiation on the price as you've seen it's not moving.
The question really is "How much would that be worth to me personally?" once you know that, you know what to offer and what your walking away point is.
He may have locked himself into a high price by giving a good price to the school he bought it from, but otherwise I would think he'd be open to negotiation, and certainly wouldn't be offended by it.