I would say that 1205 IS worth the price, for sure!
To the seller's credit, note that they do list it as "used", not new or open box. So their listing & representation is certainly accurate. If you look closely at the pictures, note that the box around the Electrolux logo on the bumpers has the paint worn off & the paint on the lettering on the bag door has worn a bit too. Classic signs of use. However, the chrome is beautiful, & so is the paint....not one scrape or ding at all in the body! Also take note that this would be a early model, probably 1969 or 1970, because it has the smooth paint job & not the crinkled finish used later on in the 1205 run.
What gives away the origins of this vacuum for me lies with the hose....it's a Grand Marquise or Ultralux cloth hose. Along with the packaging & plastic wrap, & the pack of bags with the dealer's name on it, I see 2 possible scenarios here: 1. A customer bought this 1205 new, later bought a Olympia One, and later on brought the 1205 in for a refurbish job. The customer then stored it away, thinking they might give it to a family member or use it later on. 2. A Electrolux dealer received this 1205 as a trade in, & decided it was too nice to discard or tear down for parts, & refurbished it for sale as a used model on the showroom floor. Then a customer eventually bought it & stored it away, keeping it for future use in a Olympia One box. That would also explain the pack of bags & representative's card with their name on it.
Either way, it's a nice machine if you like the early models of the metal body Electrolux canisters, and a good deal if you don't mind buying a new hose & electric wand.