I think you should also consider the rarity of the Type-R. I heard a lot of people giving up on it because people are asking too much, or they can't find one.
You're right about the KBB price, but the market price for GS-Rs seem a little bit higher. I just bought a 98 GS-R that is gonna be picked up next week for $8K with KBB valued at ~8700, but I got hooked up. I would've paid about $9K or more if I didn't know the person I am guessing.