Yeah, $2,600 is a fair price ... if your target buyer is new to motorcycling. It's a clean looking bike, that's the most important thing to someone entering the moto sphere: "How does it look?" (good job of detailing, by the way)

It will sell eventually (guess: < 60 days), and in that time you'll have to deal with lowballs and scammers.

As far as the mechanical condition goes, it shouldn't leak, smoke, or shoot sparks. It only needs to survive the test ride. Expect a new motorcyclist to bring a friend who's ridden for a while.

Then, as you may have noticed in this thread, people who are familiar with motorcycles and this motorcycle in particular, are not going to spend more than $2,000 on an S40, no matter what the year/condition. Why not? We know these machines sit up wet for multiple years in a row - 2005 with 600 miles? That's, to us, says  'garage ornament'.

So, yeah, as long as you know who your ideal buyer is, and you're patient, $2,600 is a good asking price. If some new motorcyclist bought this for your asking price(very possible), they'll love the machine and not regret  the decision (unless it breaks down on them.)