Some general impressions from a lifelong Gretsch lover:
First off, while the present owner claims to have done a neck reset the fact that the action is 5mm with the saddle bottomed out - BTW, you don't sand the saddle (actually the adjustable portion on which the strings rest) unless you're prepared to lose tone in the bargain - leads me to believe that:
- [a] the neck reset was done improperly
- [b] the neck is warped/twisted (those old Gretsches didn't have adjustable truss rods)
- [c] the top is flattened/sunk, possibly as a result of loose braces
- [d] any combination of the above
The modification done to the bridge/pickguard is also one of the worst hack jobs I've seen - I'm a retired teacher and quite frankly I've gotten better work from nine-year-olds - and, given the rarity of the original parts (especially that Brazilian rosewood Synchromatic bridge) deals a major blow to the value (a point which he backhandedly acknowledges); conversely, the binding deterioration mentioned is a common ailment among Brooklyn-made Gretsch instruments - I have a '64 Double Anniversary electric with the same problem, and I'm surprised that celluloid tortoise pickguard hasn't yet followed suit - and he did right by replacing it, as it can lead to other issues when it starts to "gas off" inside the case. I also have some questions as to why he chose to partially refinish the headstock - BTW tuners of that type never came with covers - and abandon what appears to be a restoration job midstream...
My thoughts: I'd say this bloke bought in haste based on rarity alone (there aren't a heck of a lot of these pre-1955 Gretsch guitars around, especially when it comes to acoustic archtops), found himself with a money pit (there are some very good reasons they didn't sell well, even in their heyday), and he's looking to unload quick and recoup his losses ("...take into account the work that has been done..."); I've been on the prowl for an old Gretsch like this for years, and the fact that this is a '54 (my wife's birth year) would make it tempting, but I wouldn't touch this one for love or money...