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An 84 what?? I am assuming you are talking about an 84 OMC three cylinder engine. This engine sounds like it might be nothing more than parts. A gearcase with the skeg damaged/broken could mean there is damage inside also. You might want to check the gear lube and make sure the prop shaft is not bent. Don’t bother trying to test compression by pulling it over with a rope. Can you hot wire the starter to get more accurate compression readings? Is this a fresh or salt water engine? Does the engine have power trim and tilt?
There are so many factors to consider, it is hard to give any concrete advice. One thing is for sure, you need to accept the fact that buying this engine might end up to buying some parts. So, your offer needs to reflect this gamble….Don