In my opinion it is about the price if you want it professionally done. An excellent logo will last years, maybe forever. A cheap design gets easily outdated and does not have the same appeal to your future customers. In the long run you will get more benefit from a attractive $500 logo than a copycat $50 logo.
Quality means money so if you think it's ok? Then you should do it. But i personally can help you with some real good quality for much cheaper price range. PM for details.
Many like to see before they believe. Take the case of a website template. There are free templates, but people still pay huge amounts to get it designed for them, even professionals get others to do it. It all depends on the quality of work and preference.
If he's a professional logo designer who designed your logo from scratch,I don't think it's expensive.But sometimes you can find some quality designers cheaper than that price.Sometimes I use fiverr for logo design.It only cost me $5 or $10 dollars.But I don't recommend it if you are looking for a professional logo.