To Mr. Bart...and any other FSBO's out there:
We have to assume that you would not be asking this kind of question on Trulia's website if you had an Agent who was representing you. So, forgive me, but I am assuming you are a "FSBO"... For Sale By Owner. Your question points out a good example of how people get themselves into a mess when they think they know how to sell Real Estate without an Agent. (Where DID you go to school to get your real estate education??)
We realize you didn't anticipate having this problem when you signed the contract with the buyer. But that is why a Realtor is SO worth the commission that you pay them, because they know what to anticipate, and what to do in scenarios like this one, even if you DIDN'T anticipate it!
Do you even know if the buyer is qualified for the loan? You didn't tell us why he is asking for an extension, so we really don't have enough information to answer your question. But if you have approved ONE extension, then you have made a serious commitment to the contract, and you may have to agree to a second one. You can't charge the buyer anything that was not specified in your original contract. If you wanted to do that kind of thing, you should have asked your Agent to write that in and negotiate it from the very beginning. You could threaten to terminate the contract if he doesn't pay an extra fee, but now you are getting into a gray area that will require an Attorney. (Think they are going to be cheaper than hiring an Agent to begin with??)
And here's a glitch the other respondents have left out: The buyer has certain equitable rights since you signed a contract with him. It does not matter that the "closing date" has come and gone. Yes, we say it has "expired", but please check with an attorney before you do ANYTHING else, because the buyer could come back and sue you if you try to sell the house to someone else. [Were you planning to release his earnest money?? What if he refuses? What will you do then??]
Bottom Line: Always hire a Realtor to sell your property. ...And now you need an Attorney.
Good luck to you! It was a good lesson learned by all.
ULTRA Real Estate Services