I'd tell him the original 2500 dollar deal is off. It should of been anyways, when you told him the situation and didn't want to sell it to him in a lesser condition than what it was presented as in the beginning.
Add on the parts/labor expense you think is fair and comfortable with. Tell him you'll give him the first chance at the new price, if still interested. Otherwise he is in no way tied to the deal. Can walk if he wants to, and tractor there for will be advertised at the new price, with no obligation from him if not I interested anymore.
For what it's worth, doesn't sound like he was real interested, cash in hand, knocking down your door to buy this thing. Sometimes those types of people are hard to get money out of, IF they do buy something. Might be a blessing in disguise if he says (NA, not interested anymore), and you sell it to somebody else that has the cash in hand, and more serious about buying it.
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Today's Featured Article - New Hitches For Your Old Tractor - by Chris Pratt. For this article, we are going to make the irrational and unlikely assumption that you purchased an older tractor that is in tip top shape and needs no immediate repairs other than an oil change and a good bath. To the newcomer planning to restore the machine, this means you have everything you need for the moment (something to sit in the shop and just look at for awhile while you read the books). To the newcomer that wants to get out and use the machine for field work, you may have already hit a major roadblock. That is the dreaded "proprietary hitch". With the exception of the
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