Well, you'd get better luck in the ZJ forum because Grand Cherokees and Cherokees are not the same model.
That said, I'd definitely pay less than $3000 for it. Without seeing it, it's hard to say, but ZJs love to have electrical gremlins, their transmissions are underwhelming (especially at 180k), the 5.2 is a solid/reliable engine though, I hate neglected leather... I can't say exactly what I'd pay cuz I don't think I'd ever buy anything less than a near-perfect ZJ unless it was a manual or a 93 4.0, but that's me.
EDIT: I didn't even notice the 4wd not working. How I feel about that depends on which transfer case it has, but either way it doesn't help things any. Quite frankly, I just plain wouldn't buy it.
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Build Thread -- http://www.jeepforum.com/forum/f177/whats-chrokeese-build-thread-2525690/