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It looks like the tuner may have been replaced by a DuMont inductuner. Yes, this will reduce the value, since the cabinet was changed to make room. My guess is that the chassis was hacked to make room for the new tuner, further reducing the value.
Looks like the radio has been modified too. Some chassis photos would show what had been changed.
Even with these modifications the set is worth much more than $500.
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