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Smith and Wesson 686-1 4 inch barrel, stainless, serial #AVD5932
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Made July 1987 according to SCSW
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I might get it for around $400 plus or minus
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I'd call that a reasonable price in the condition you describe.
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may be a bit of lead or pitting in the middle between two grooves
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Most likely leading. S&W uses pretty good stainless alloys. Although pitting can result if you really work at it (e.g. dunking it in the ocean and then storing it uncleaned in a high humidity environment for a few years), it's unlikely pitting would show up in just one spot.
Cleaning will tell the tale. Even with a bit of pitting in the barrel odds are it will still shoot well.