The revolvers that seem to sell the most are the snubs, as they are still within a niche that a revolver still fits today (the compact concealed carry niche). That being said, a Model 10-5 is a K frame revolver, it's relatively heavy, and it's blued, so it's definitely no competition for my Model 60 or a current production 642 which will be lighter and more resistant to weather and wear. It'd be a hard sell as a proper defensive gun for any shop.
It's also an older gun with a pinned barrel and recessed cylinder, so it falls into the collector sphere to sell too, but only if it's in really good condition. If the rust isn't bad on the trigger and hammer, and it isn't present anywhere else, you could probably clean it off and bring the gun up to good condition. If the rust looks like just surface stuff, use a brush and some good solvent like Break Free CLP, and if that doesn't work, try some Flitz metal polish and lightly rub it on and off with some patches. If it looks like it's pitted the metal, don't bother. The writing on the box also reduces value to a collector type sale but you still have the original box, so not much. And as for the empty chamber, no, that's ludicrous for a modern double action revolver. That's some old school holdover from SAA days for fudds who can't overcome a training scar.
The real issue is who one sells it too. If you take it to a gun shop to sell, they'll give you half of what it's worth on a good day. So, if they say it's worth 500 dollars, you will get $250. The rest is their profit to make. Honestly though, depending on the condition of the gun with the rust, it'd be a hard sell to the shop at even $400-450, so I'd expect even less. Even though it's a very nice gun, it has a very particular selling niche, and the gun doesn't fit that very well unfortunately. If it's to an individual (I assume you want to buy it from her maybe?). Without seeing the gun's condition, I can't tell you, but with what you've mentioned, I wouldn't pay 500 bucks for it if I were buying it myself. I'd go as high as 600 for a near mint one with the same stuff, and 500 for a near mint gun with the original grips and no box or anything. But a worn gun with a worn box is a tough sell at 500. Conceivable, but not ideal. I'd say $450 give or take, but try for 500 as someone may not care too much, and the rust may not be that bad.
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