My timing chain is bad, dealership stated must change waterpump and seal. total

seal yes and water pump is done as preventitive maint a real good idea

2000 Dodge Neon has a 2.0L engine with a timing belt not a chain. If the belt BROKE then yes $1200.00 is probably fair if that includes a valve job. If they're only doing the belt , pump and seals , I would shop around. Job only takes about 3&1/2 hours if not less , for an experienced chrysler/dodge tech. Labor $300.00/hour?