These are my thoughts exactly. For $3500 I would keep this hot little number and have her restored. I'm in the process of having my '58 Veloce restored with heavy rust, much like this car and believe me, I know what it costs!!!Team Fraser, you sound like a reasonable guy who has no interest in Alfas or cars for that matter looking to help your neighbor. The talk of restoring or not is noble but immaterial and not your concern. An argument can be made that anything made by man is restorable starting with sunken Viking ships. It's not mundane to the question of value. You just want to get some knowledge that if you sell it at "X" to someone in the know that you haven't left 10 times "X" on the table, right?
The car is worth about $4000 minimum in raw parts--- Seats (if they aren't rotted away), steering wheel, engine, tranny, trim, glass.. etc. It's possible to squeeze out somemore with some heavy duty dismantling of ever nut and bolt like brake parts, steering box, doors, lids, suspension..light assemblies, gauges. Do you want to do that? I doubt it. You should be able to sleep at night if you take $3500 cash for it knowing the "picker" who bought it is going to squeeze out something more in the end and it makes everybody happy-- you, your neighbor ,anfd the buyer.