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If the PO had not told you about the 'problem' then you would not have known anything was wrong. Instead you are now looking at a car that has a rebuilt head. I wouldn't let that deter me from buying the car.
The price should be based on the overall condition of the car. The nicer the car the more $$. For 3K I'd prefer not to have to do to many repairs to bring it up to snuff.
Best of luck!
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