I have been training in and teaching Japanese Sword Arts for a number of years. I own swords from Paul Chen, Bugei, Kris Cutlery as well as customs from Howard Clark, Bob Engnath, James Raw, etc. Right now I probably have 12 to 15 katana. I am an owner of a commercial dojo as well as having a private training facility, so most are used regularly.
Some ideas about makers in your price range, which is sort of the mid-range for production swords. That means, of course, that the field offers a number of good choices.
Paul Chen / Hanwei Forge – has been around the longest of the current production sword makers, perhaps with the exception of Kris Cutlery; makes higher end swords for Bugei as well as some others; wide range of products and prices, usually available at discount. I saw the new models from their performance line and had a chance to try them out on some mats – some excellent cutters in that line. Marketed in the US through C.A.S. Iberia.
Last Legend – I have not seen recent ones, but was not real keen on the looks of the early models, mighty awful looking IMHO. They make some swords with a ridiculous amount of sori (curve), very awkward and designed just for cutting. On the other hand, I saw one stand up to some horrible abuse at a cutting seminar, where it was the sword used for beginners.
Cold Steel – imports some Japanese swords; pretty crude IMHO and over-priced. Handle like crowbars but are probably just as tough. The usual issues some people have, of course, with CS and LT.
Cheness –The fittings are pretty pedestrian but the swords seem to perform well and buyers generally seem pleased. Recently, I had a chance to try some of the new Cheness SGC swords. The construction and fittings were plain, but well done and appear very durable. Probably not the best "all around" sword since they are fairly blade heavy for kata use. I ended up buying 8 for the dojo and students. They are patterned on the “Hataya” cutting swords. They are really tough. Attached is a pic of me cutting a 2 mat roll. I can also tell you that the sword will cleanly cut a 2 mat roll and a 1-1/2” pine dowel with no edge damage.
They may have the best selection in the under $400 area.
These specialized blades were built based upon a custom designed sword created expressly for dojo cutting exercises. After more than half a year in planning and preparation, we have finally completed our SGC series for production... effectively bringing down the price of this sword from a $5,000 to $7,000 custom built range down to less than 1/10th of that cost.These swords are broader and thinner than a standard katana. With a weight distribution optimized for cutting exercises. The entry angle of the cutting edge is effectively minimized by the geometry and is only made feasible with the Cheness Spring Steel, which aids in maintaining the edge durability. Click on the photo of the swords below to read the details of this special series of cutters.
Dynasty Forge – make a wide range of swords, some in your price range; generally good fitting and well thought of.
Bugei –Usually considered the top of the production sword heap, most prices well over $1000. I own a couple of Bugei swords, and several of my students do, as well. This is generally the level I look for when a student moves from an iaito to a live sword. Most new swords over your price range, but you can often pick up a nice used one from someone moving up to a custom. Try the classifieds at swordforum or other on-line sources.
Oni Forge– decent fittings, good cutters.
Kris Cutlery – now makes a sword with simple Higo fittings for about $450. I have not sen one but Kris has been around for a long time.
Furuyama – OK fittings, I have never seen or used one but have heard they are a decent performer
http://www.sword-buyers-guide.com/ - has a ton of information and reviews of lower priced swords; I have not read it all nor do I vouch for it, but it might be a good place to start getting some info.
Now, as to weight, length, etc. that can be a really complex question. Obviously, from the field above you will have a vast range of blade and tsuka (handle) lengths, how much sori (curve), kissaki (tip – the pointy part) style as well as the amount of niku, which literally translates into "meat". It's a term used to describe the tendency of a traditional Japanese blade to have a bulging cross section on the side surface. A fine article written by Keith Larman, who has taught me much of what I know, and probably a bit that I have forgotten, about Japanese swords – can be found here
http://www.bugei.com/larman.html
A lot depends on what you will want the sword for, and if you are training in a Japanese Sword Art. If you are, of course, the routine advice is – “ask your sensei”. Different styles require different configurations. Also, a sword that may be the right length for an experienced practitioner will likely be too long for a beginner.
There are a number of swords out there sold under the names Masahiro, Musashi, Furubushido and Ryumon. While it I hard to argue their “bang for the buck”, with these swords selling in the $50 to $100 range on e-bay, these are not really what I would trust as functional swords. I think these are all churned out by the Long Quan forge in China and they have a reputation for little or no inspection or quality control. They are predominantly sold on e-bay, and have no return policies or contact for the most part. I definitely would not use one for anything more than decoration, although I am aware that many people do.
Getting a proper sword is important for a couple of reasons beyond snobbery. Critical failure in the tsuka / handle turns the sword from a cutting weapon into a projectile one. There is simply a lot of fitting involved in making and fitting the core, then wrapping it. Even in the Chinese imports, it is hard to get proper construction below a certain price level. Most of my production swords have (Chen, Bugei) have custom tsuka / handles.
Issue two is the quality of the blade, which is primarily a function of the heat treat. A poorly treated blade will fail, and catastrophically – meaning it breaks and turns part of the blade into a projectile weapon. A couple of years ago one manufacturer’s line had talk of several broken blades around the US, and I had the opportunity to examine several of them at a well known smith’s shop. He showed me the consequence of the faulty heat treat in the steel, and it was scary stuff.
With all the decently made swords available for a modest price increase, I don't see the reason to go with something that may be unsafe. YMMV, of course. I don't have much experience with these swords, having seen them on a handful of occasions.