Most of the pre-1964 Winchesters have attained semi-collectible status among shooters. Yours sounds like it is in good enough shape to to be a fine shooter but have little collector interest due to the minor cosmetic rust and shortened stock. The receiver peep sight is a good feature, and adds $50-80 to value plus more accuracy.
Good things to look for in a good buy:
1. Crisp, snappy action as you work the lever. Lockup should be firm, hammer trigger pull should be crisp, and no excessive friction from bolt/hammer/lever travel. Hammer safety notch should not release hammer no matter how hard you pull trigger. Disconnector functions when grip on lever is released.
2. Original blue on bolt face, barrel breech, extractor claw , and pristine rifling indicates little firing.
3. Chamber throat and muzzle should have clean, crisp rifling edges. This model is commonly cleaned from the muzzle, and that can make for muzzle/crown damage.
Bad things to look for in a used M94 Winchester that will drive the price down:
1. Indications of pry marks in chamber mouth. Using a pocket knife or screwdriver to remove a stuck case is very common. Examine a fired case if possible. Request test firing or refund if chamber is damaged.
2. Protruding metal around firing pin hole. Excessive dry firing will cause this.
3. Buggered screw heads indicate amatuerish disassembly/reassembly.
4. Magazine tube retaining screw (under muzzle) tends to batter from recoil if loose, and this causes loaded rounds to slip past cartridge stop, jamming rifle. Request refund if feeding malfunctions occur.
If your dealer gives a full refund policy and live firing is satisfactory, then your rifle sounds like a very good buy.
HTH
John
