I have never seen that dialogue box either, but I am 100% sure that this would only unlock the hero for your account, not for your character.
Also, let's have a look at what he's offering.
Koss, Dunkoro - can be gained as heroes for any non-Elonian in a matter of 2 minutes upon arrival in Kamadan.
Jin - takes slightly longer, but should be yours in a matter of half an hour at most, if you follow the quest markers. (Unless you select the elementalist; in that case, she's yours automatically after you've finished Nightfall.)
Feel free to try what happens in the first dialogue box and you're welcome to waste some faction points in the second dialogue box if you don't believe all of us. It's only a few k of gold you're wasting, essentially. Balthazar faction should be converted into skills or more importantly into zaishen keys, which are worth about 5k each.
Btw: fascinating how Norgu would cost 3k faction, while Goren would cost 6k faction, isn't it? Devs must've been smoking crack when they set these prices.