Seems a tad bit high to me. I paid $650 for a brand new ( 2011 old stock bought new in Jan. 2013 ) Tohatsu 4hp with a 3 year warranty. but price mainly depends on condition an availability of such motors in a local area. Yamaha's are great little motors I have a 2hp and it is a really bullet proof little motor. If it is as good as they say it is then I would try to haggle over the price.
Had a small crack in the cowling, got em down to $400 with a plug wrench, gas can, and a few things of lower unit oil. Small outboards are hard to find around here. It started on the 2nd pull.