Blem = blemished
In other words, it cannot be sold as new any more. Depending on the severity of the "blemish", you can get a fairly good deal on one of these horns. Many times it is a mere cosmetic thing that is wrong, like scratches in the lacquer or a small dent somewhere that is hardly noticeable. Other times that 'blemish' is so sever that it effects the intonation of the horn itself.
Buy only from a reputable dealer. If you buy out of someone's trunk you will get burned.
W