That depends, are you wanting just a smoker or something dual purpose?
If you have a grill that you are planning to keep using and just looking for a smoker I would go charcoal. I still miss my charcoal smoker, there's just something about the flavour. My first one was a Weber Smokey Mountain and that thing is great value for money. You can get the big one for around $700 all in. You could also look at adding a fan controller and still be well within your budget.
I'm a bit jaded on pellet grills based on my experience owning a couple, I don't find they are fantastic smokers or grills, they just do both of those things okay. I've heard good things about the new Weber Searwood, it's close to your budget, also heard good things about the Louisiana Grills brand.
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