Don't buy anything from any contractor that won't at the very least do a manual J load calculation. Old school goes by square footage, more or less hit and miss. I'm an A/C contractor in Houston TX. Replace the condensing unit and not the compressor as someone else said. It's possible that the air handeler and refrigerant piping would have to be replaced in order to get the full SEER
rating. It sounds like your unit, possibly a 10 seer, and being wore out, possibly an 8 seer. By the end of the month, manufacturers can only produce 13 seer, it's a federal mandate. However, they can sell the remaining 10 and 12 seer units until their supply is depleted. What brand of equipment did he propose to replace it with? That has alot to do with pricing. You're looking for the quality of the install, not just the brand name. Try going to hvac-talk.com but don't ask for pricing because they'll nuke the question. Feel free to ask any question you want except pricing. Good luck!