$500 is very optimistic, I fear. I'd take the $250 and accept that computers are worthless after a few years, unless they're in absolutely pristine condition (and even then...). You've probably got a lot of use out of your Mac over the last few years. That's worth something, surely?
Personally, I wouldn't pay even $100 for such a machine, but that's because I'm fussy about things working just right. The beauty of the used market is that there might be someone, somewhere who genuinely doesn't care that the old 1.83 GHz Core Duo runs hot and slow by modern standards, that the case is old and tatty, that the DVD drive is on its last legs, etc. The trick is finding that person: eBay seems to work pretty well at that, since it brings out the risk-takers who aren't fussy about condition.
Good luck though! Are you getting a new Mac?
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