Hmm. an 07 for 3500 would be a good deal. I'd say even 4000 would be ok. I just got my 01 for $3000 with quite a bit of basic mods (b-pipe, stainless impeller, ignition module, flame arrestors, extended ride plate, toploader intake grate, wider handlebars, aluminum throttle lever, milled head (for more compression) and prob a few that I can't remember right now.
I think my deal was outstanding (for me) since I would do most of those mods on my own.
A mint 07 if it's black would be sweet. Many say the 96-07 are more mod friendly. The black color alone would have me pay $4000, but that's me.
I would say that $5500 is way too much and that he/she has had no one interested in it at that price so you are like water in a dessert if you are offering real money. lol.