Ken and Strumelia both have given you really excellent advice. The only 2 things I'd add is 1. You need new strings, you should change strings every couple of months as a rule (not that any of us do) and it's unlikely the seller put a new set on. 2. spend the money on the tuners. They're easy to replace, easier than the restringing will be. You can get them from Folkcraft for $18 and I'm pretty sure, based on your pictures, they'll fit. 

I also get what you're saying about appearance, and that's not silly. But I say just live with it if you can, it's a "bird in the hand" after all. As Strumelia said, If you practice, in 6-8 months you'll have a much better idea of what you really want. 

Other than the tuneing machines, your MD really doesn't look too bad from the photos. You can do the obvious things needing fixing yourself, new strings [normal maintenance], replacing tuneing machines is pretty easy although selecting new ones is a bit harder. Just pull and replace the end pins, they're probably escutcheon nails or brads. Don't worry about the scratches/chips, it's part of having a used, probably older, instrument. I heard a pro country singer used an older guitar that actually had holes worn through the top. Don't use anything with silicone in it to clean the outside since it cannot be removed, it will prevent any refinishing or other repair work to the wood.

Bottom line, don't pay for anything more than tuneing machine installation at most.

My own thoughts are that a VSL of between 25"-27" is really ideal if one is intending to play in the key of D a great deal. (most dulcimers play in D more than in any other key). Once you get in the longer 28-30" vsl range, you are going to start breaking strings a little more often, and the shorter you go ...say 22-24", the heavier strings you will need to put on in order to play comfortably in the key of D.

That's the reason epinettes (which often have a typical vsl of only 21" or so) are usually tuned higher for the key of G (3 steps up from the usual dulcimer D). And dulcimers longer than 28" scale length often do better when tuned to C (1 step lower than the usual D).

Beginner dulcimer players often worry that they 'need' a shorter vsl because they have small hands. What they don't take into account are two important factors: 1) They be using also their thumb while fretting ...which extends their reach way beyond what most guitar players do using only four fingers ...and 2) Because of the drone-friendly tunings of dulcimers in the first place, one frequently is making use of open strings while fretting chords. So it's not really all that common or critical to make a long stretch when chording. When it does come up that a long stretch is needed, your thumb can neatly solve the issue most of the time.

While I wouldn't necessarily recommend a 28-30" vsl dulcimer to people with smaller hands, I think that vsl's of 25-27" are great for people with any size hands, even small hands.  Just my two cents.

IMHO FB Marketplace is not a particularly good place to shop for dulcimers if you are inexperienced with them.  Neither is Goodwill.  Most of us who really care about our instruments would not sell there, I think.  

FYI the New Harmony Pudge has a 24"VSL, considered by many to be a most excellent length, and hardly too small for you.  I build and play a 24-25" VSL instrument as well as 28-30" instruments.  The McSpadden Ginger has a nominally 24" VSL and the same notion applies.   

IMHO, with your lack of experience you are fretting (all puns intended) far too much over the VSL.  After you've played everyday for 6 months, you'll have some idea of what  "too big" or "too small" mean to you personally.

What exactly is the issue with the tuners?  Are they too tight?  Or too loose and don't keep the strings in tune?  Have broken knobs?  We can talk you through fixing them if they are too tight or too loose.  No need to spend money when a quick fix with a screwdriver will do the job.

(runs and hides my trusty can of Pledge before anyone sees it...)

Please, please, never use Pledge on a dulcimer or any other instrument made of wood. Pledge contains substances that make it virtually impossible to repair cracks, dings, and scratches because they prevent the absorption of stains to match the color of the wood. This causes any repair to stand out like a sore thumb. Instead use a good instrument polish like the ones sold by C. F. Martin, Gibson, Fender, and other guitar makers.

Ken

"The dulcimer sings a sweet song."

I'm with John.

I'd get tuners which match the originals (more or less). Easy to remove and install.

If you don't have an electronic tuner, get one. They can save a lot of strings if you aren't skilled at tuning, and of course the tuner can be moved to your shorter VSL instrument. My preference is a KORG tuner with a clip-on guitar pickup, but I have also been happy with the cheap ($4 from China) JOYO type

If I had it, I would unscrew the tuners, give the body a good cleaning-- steel wool, maybe a coat of Deft semigloss spray lacquer, and paste wax (or Pledge!).  Replace the tuners, either with the same type as what you have, or even upgrade a bit. Check the fretboard for flatness, put new strings on and go at it!

Gina, here a a few comments for what they are worth. $200 to fix that dulcimer sounds like a lot of money. A new set of similar tuning machines is a little less than $20. It shouldn't take more than a half hour to take the old ones off and put the new ones on. 27 inches is not an extremely long VSL for a dulcimer, but today most folks who play chord melody style prefer a shorter VSL. Folkcraft makes dulcimers with shorter VSLs. Even if you had the pieces broken out of the lower bout sound hole, it would be very difficult to repair. Personally, I would not spend anymore money on this instrument. I'd take the tuners off, clean them as best I could, reinstall them, put on new strings, and use it to learn to play until I could afford a new one.

Ken

"The dulcimer sings a sweet song."

IMHO spending $200 to fix a $100 dulcimer is not worth it unless you happened to luck onto an historical instrument from a known master builder (it has happened, but rarely).  Spend the $200 on another instrument.  Keep you eyes open here for someone selling an instrument that you could become attached to, at a price you can afford!

As Richard sez, we can talk you through cleaning up the instrument you have, adjusting the tuners so they work as properly as possible, and other issues.  

As a new player I recommend you copy, print and read the following booklet I wrote a few years back for beginners called
I Just Got A Dulcimer, Now What?   It's an illustrated glossary of dulcimer terms, so we all speak the same jargon, plus answers to many beginner questions about tuning, playing, care and feeding.  Tips like how to never breaks another string when tuning...

Ken Hulme's "I Just Got A Dulcimer, Now What?" Article - Strumelia | fotmd.com

The Beginner Players Group here is the perfect place to ask beginner questions.  You actually have to Join the Group to read most posts and make your own posts there.  Start a new post with your question(s) rather than tagging in on someone else's post -- it will help others like you find the answers you asked for.  

I understand your quandary. Over the 28 years I have messed with dulcimers, for me, I have found that second to the sound of the dulcimer, I need to enjoy the looks. I do like nice looking and well finished wood. From what you are saying, it sounds like you may have a hard time enjoying the looks of this dulcimer. (perhaps I read you wrong?)

There a number of people on this site who can give you some good advice on how to clean this dulcimer up yourself--I am not one of them. Perhaps you could get the build up off the tuning machines, get them oiled so they work smoothly  and get  the wood cleaned up to look nicer. Then you can play it and save up for one that is nicer with a shorter vsl. I have personally purchased more than 5 dulcimers, several sight unseen, which were bought by the original owner as an impulse buy, played very little if at all, then put away and stored. One of them still had the noter stick and the pick sealed in its little envelope that had not been opened.  I say this to let you know that used or second hand dulcimers are not something to avoid out of hand if they have been stored in a home with controlled temp and humidity--not in a rental storage unit, not in a damp basement or in a hot attic.

Just my 2 cents. Best wishes with this project whichever way you decide to go.