I probably wouldn't give any more than $3000 for it. I can see maybe 12 mpg on the highway if you baby it, but mixed use it's probably going to be under 10.
The 95 also has the TTB front axle, which isn't the greatest if you want to lift it and put on bigger tires.
IMO you would be better off trying to find a 99-2000 Super Duty with the 5.4 or V-10. Even the 5.4 has more power than the 460 and both 5.4 and V-10 will get better gas mileage and probably be more reliable. The solid front axle is also much more lift friendly.
What is TTB and how would a 5.4 have more power than a 7.4
This truck had leaf springs
It also has headers
And in vary good condition for a truck that old
TTB = Twin Traction Beam. This was a type of independent suspension that Ford used on many trucks in the 80s and 90s. There's nothing really wrong with them in stock form, but when you start lifting and modifying things, they tend to have alignment issues and tear up tires very quickly.
There's a lot more to an engine's power output than displacement.
The 460 is a 7.5L and is rated at 245 HP and 405 lb-ft torque.
The 5.4L is rated at 260 HP and 350 lb-ft of torque, so a little more HP but a little less torque than the 460.
The V-10 is a 6.8L and is rated at 310 HP and 425 lb-ft of torque, so it has more HP and torque than the 460 even though it too has a smaller displacement.
And just for comparison, the newer 3V 5.4L has 300 HP and 365 lb-ft of torque, and the 3V V-10 has 362 HP and 457 lb-ft of torque.
Also, I'm certainly not saying that you shouldn't get the 95, just making sure you know what you are getting into. As I said before, those are great trucks. 92-96 is still my favorite body style, I'd still have my 95 if it wasn't for the damn rust from all the salt they put on the roads up here. If it's in great shape, it's probably worth the money. If they are asking $3500, offer $3000 and maybe you can meet in the middle. I would recommend not lifting it though with the TTB suspension.
I wouldn't lift it at all with the TTB in it, but it certainly can be done. Plenty of other people have done it. If it were my truck and I wanted to lift it, I would find a Dana 60 solid axle from an F-350 and swap that into it.
You can probably get more advice on this in the 1987-1996 truck forum.