I can help you on two fronts. First the value of these old celicas is very subjective and $3500 is a premium price for a car with stock mechanicals. I would advise patience, one owner, rust free cars can be found...I just bought one a couple weeks ago in Canada for $3000. There is one on ebay US right now. Doesn't need paint, looks great already and no one has screwed with it. I value that car much more than my modified TA22 that someone had dropped 8 grand on before I bought it from him for $3500.
There is no way to tell what is under that paint, 2 years from now you may discover that you have inherited someone elses nightmare.
Don't get me wrong I love my TA22....one of the reasons is how good it looks wearing 2001 Celica silver.