I was Strom shopping several weeks ago and was impressed that these bikes hold their value rather well -- such that private party sellers typically can get the kbb dealer pricing. Deals do come along, if infrequently, so it can be a waiting game. Farkles are another wrinkle that impacts pricing and is highly variable.
In this economy there are some motivated sellers, then there are those just testing the market. I suggest you make a reasonable offer, and let the seller think about it while you keep shopping. Many times the seller is prepared to lower his price only after he feels there won't be a quick sale.
At the kbb price, the bike should be pristine -- no drops, no off roading, maintenance kept current, good tires, etc. Exceptions make good points to negotiate from.
04 DL650, 18k+ miles, lowered, grip heaters, hand guards, touring laminar lip, trunk, soft saddlebags (when needed), aprillia mirrors, frame&swingarm sliders, fork brace, skid plate