Sorry I meant to add that those horses were also unfit, and it's in this economy.
Personally, I would at least start the horse on a conditioning program. If you get on and get him walking briskly and on the contact for 1 hour every day for about two weeks, you're going to see a big improvement in fitness. Then I'd start working on his training, getting him working better and looking better. At the point where he really looks like he is moving easily, on a contact and able to stretch over his topline, I don't think that $2800 would be a problem. I would wait until then to really put him on the market though because people are quick to judge horses, and will not look at them a second time if their first impression was that of an unfit horse who is rusty in his training.