IMHO, Staining or painting that guitar would be a major mistake. It's mahogany! It's pretty wood. Each time you describe it you say it's made by a luthier, so why would you want to take away from that fact? Nothing you could do to that wood is going to make it a more sellable guitar. In fact I bet the offers that were posted in this thread would probably disappear if you did that. If you were making the guitar from scratch I'd encourage you, yes, be creative. Stain it, paint it, buy a Bedazzler on TV and put little rhinestones on it, whatever you want, but D O N 'T go messin' with that mahogany.
Like everyone else has indicated, it's not going to sell on visual appeal or by market demand, 'just not gonna happen. If it's the need for the money that's the driving motivation for the sale, decide if having half a loaf of bread is better than having none, then sell it to Eric for the $200 he offered. If it's the need to make some room and eliminate some clutter, sell it to Eric for the $200 he offered and enjoy the extra space. Oldguy indicated he might want it too. Start a bidding war, a little Fret Family Feud auction action.
(Try and say "Fret Family Feud auction action" 5 times fast, it will take your mind off the guitar) Maybe 'cause he's an 'Oldguy' and Eric's only a young guy, Oldguy might have an extra $50 bucks in his pocket. But those are about the best offers you're likely to get. Honestly, you're obsessing over the inequity of having paid $899 and wanting to get what you feel is a fair price, and I understand that part. But a whole forum full of your guitar playin' friends are saying maybe $400 is not a realistic expectation.
Once it's out of sight you'll stop thinking about it ~
That is of course until Eric posts about what a great guitar it is and how he would have paid $899 if he knew how sweet it was!
Then the :thwap starts all over again
LOL