The value of a used car is going to be determined firstly by where it is located and secondly by what the buyer is willing to pay - if there are no other vehicles that suit your needs in your neck of the woods, and you want that one badly enough, you'll pay what he's asking - if you think the asking price is excessive (and that's what it sounds like), you'll either try to negotiate it down, or move on - likewise, if there are other vehicles close by that suit your needs, you're not going to focus on that particular one, you'll look elsewhere.
Take a look at Craig's list, see what else is available nearby, or within a reasonable driving distance - you can also factor in the cost of flying out to where ever the vehicle is and driving back or having it trucked in.
You make it sound like a Tracker is "slightly newer and a bit more modern looking" than a Sidekick - just so you're aware - a first generation Tracker (89~98) is pretty much identical to a Sidekick, there is a second generation Tracker (99~05), which also has a Suzuki equivalent, the Vitara, and which was also available in a convertible, at least up to around 2003 - if you're looking for "slightly newer and a bit more modern looking", along with more power (2.0 litre engines as compared to 1.6) and better equipped, that might be the way to go - of course, you'll probably have to pay a little bit more.
One last thing - do you really want to be buying a car with no title? If he has the paperwork, let him sort it out before you buy it. Plastidipped exterior, 205 k miles, trashed interior and no title, sounds like a "parts car" to me - $700 would be more than I would be willing to pay...