If your son "can't handle the pegs" I assume they are simple violin-style friction pegs. If so, take it to a repairman and ask him about the feasbility and cost of replacing them with banjo-style planetary pegs. It shouldn't cost too much and you can probably get a free ballpark appraisal value out of him while he's looking at it. Whether or not you decide to do the peg replacement, you'll at least have an idea of what the guitar's worth.

Bruce