Love Winchester 1892s and also have one in .32-20, a saddle-ring-carbine made in 1896.
Unfortunately yours has been bubba'd about every which-a-way. It's suitability as a shooter is its main strong point now which puts it in about the same catagory as the replica Model 1892s out there. Not seeing photos makes it truly impossible to evaluate but $500 ought to about cover its market value in the condition described.
If it has a good bore then the .32-20 is a dandy cartridge for the handloader. It's a round that deserves another run at popularity. In a late vintage '92 the .32-20 can be loaded to perform just like the .30 Carbine round.