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Honestly, even with the upgrades and engine swap(which means nothing), $12k would be on the high side.
I paid $10k for my pristine, always garaged, ding free, spotless '99 base with 75k miles 2years ago. I wouldn't expect to get more than $9-10k for it if I sold it now.
The lower miles may justify up to $12k on the one you described, but not more.
As I said, the newer motor means nothing, as most cars come with motors, and the fact the he needed or wanted to drop in a new motor shouldn't cost you a dime.
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