That is an earlier luftwaffe officer sword. Later ones had aluminum metal fittings, while the earlier ones had them of nickel-silver. Most consider the earlier type more desirable. This one obviously has condition problems in the area of the leather. The grip leather appears to be OK, from what can be seen. The scabbard leather is in poor shape. To collectors, condition is very important and the problems here would make most collectors pass on it. That being said, it is not a total disaster unless the blade has serious problems (rust, pitting, plate peeling, etc.). The scabbard leather can be restored. But, it is questionable whether the new leather would match that of the grip in tone and otherwise. The fittings can be cleaned up with metal polish, if desired, but you have to be careful with the gold-plated swastikas. The gold will come off if heavily rubbed. Many collectors prefer items in "uncleaned" condition. It mainly comes down to price. If you can get it at a very low price and don't mind any restoration work, which likely won't be cheap, it could be a decent collectible, especially for display or as a beginning acquisition. But, the value will be affected. so don't expect "top dollar" for it if you decide to sell it at some point.
