It's a fair price if the antenna he installs provides trouble-free reception for all the channels you want to watch. Has he specified the make and model number of the antenna he'll install for that price? How many rooms is he willing to wire? (That quote's not outrageous for one TV.) Does it include a pre-amp? The contract (or signed estimate, if that's the way he works) should include as many details as possible before the work starts.
The installer's recommendation of additional height suggests he may be one of the good guys who knows your area well. I'd take him up on it.
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