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Of course there can be many opinions about the value of this particular KF9. Scott is probably about spot on as far as fair price for this motor in its current condition.
On the plus side
Its a KF9. First year Merc Inline Four
The tiller handle is complete and still attached to the motor
The fuel connector is there
Prop looks good
Exhaust tower has not been cut/modified
Probably has never seen salt water in Nebraska
On the down side
Its a KF9. First year Merc Inline Four. The KF9 had weak connecting rods and magneto overheating issues. The KG9 addressed these issues.
Its important to figure out why this motor is seized. Is it from sitting? (This motor looks like its spent considerable time outdoors.) Or is it something more sinister like a broken rod? This will greatly affect what you are able to do with this motor in the future. Obviously anything can be fixed/repaired/rebuilt. Its the cost that becomes prohibitive. Parts are available for this motor but are not cheap and are not always readily available. To rebuild this motor would be a labor of love more than an investment.
However, if you have the ability and are up to the task to bring this motor back from the dead by all means go for it. There is nothing from the time period that compares to a KF or KG9. I run mine regularly. One of my favorite Mercs for sure.
Good luck! Let us know if you purchase it.