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Your Ride: 1991 318is (e30 m42), 2007 Mazdaspeed 3
Seems like a decent offer, And yea I wouldn't expect to get too much extra out of the mods. You might want to wait for another offer but it could take a while IMHO, I guess it just depends maybe you will get a lot of interest in it fast in which case take the best offer.
Personally I think you're lucky to get that offer this close to Christmas & winter. This is a bad time of the year to be selling, early spring through mid summer is your best time to get top dollar. People are gearing up for the holidays & year end financials then prepare for taxes. I'd take the offer & run - unless you can afford to sit on it a while.
It's called "compromise". That's what you do when you commit to a partner. (It's like do the crime, do the time...lol - sorry babes, I know bad analogy) It's a double edged sword, if you want to be in that relationship you make EQUAL compromises. On the babes' behalf (which most guys never consider) - she's probably saved your ass & you CA$H in the long run from making stupid decisions.