Cloak of Burning Eyes: These cloaks are embroidered with a pattern of red and orange peacock eyes that glow with faint ember-light.
When worn, a cloak of burning eyes grants a mild sense of increased alertness. The wearer gains a +1 circumstance bonus to Reflex saves, and a +3 circumstance bonus to spot checks. In addition, a flickering aura of flame surrounds them in combat. Any melee attack the wearer makes does an extra point of fire damage. None of the cloak’s illuminations provide enough light to see by.
Light enchantment and conjuration; CL 3; create wondrous item, burning hands and true strike; Price 3,000 gp.
NPC Gear: 7th
Treasure Value: 8th
+1 Reflex Saves (1*1*500) = 500 plus half for multiple different abilities 750
+3 Spot (3*3*100) = 900 plus half for multiple different abilities 1350
Natural attacks and attacks with melee weapons do +1 fire damage = 900 gp
A masterwork bonus (+1 to hit) is valued at 300 gp over the value of the weapon.
A masterwork bonus is one half of a +1 enhancement, and very roughly one quarter of the cost.
The broad applicability of damage (available for any melee attack a character might use) means the ability is more valuable. Let's say it is half again more valuable. If it were a full die of damage (1d6), I would say it was twice as valuable. But it isn't, and it's energy damage, which is more circumstantial than a regular damage bonus. So let's say double the value to 600, plus half again to 900.