I didn't know who else to ask and I don't want to make a 'stupid' decision.

Would you say paying £850 for a 1st edition 3rd impression Hobbit, which will need to be rebound, is too much?

I've been looking for a first edition Hobbit for a while but haven't had much luck. Maybe I haven't been looking properly, I don't know. I know there was one that sold for £1600 recently but apart from that one, I think I only saw ones which cost more than £2000.