You never mentioned that you had put the tractor up for sale, just that someone was interested in buying it from you and has made an offer. The $500 is a fair offer for an old Z that runs in the condition you indicated. Unless you agreed to fix the tractor prior to the sale I wouldn"t put anymore time, effort, or $$$ and sell it as is especially, if they saw it in the barn and approached you. That said, you need a thermostat. You need to slow down the flow of water through the radiator as stated. The thermostat will do that. Make sure that the cap is good. A low pressure cap is all that would be needed. One other point, most of the "vintage" tractors radiators aren"t meant to be filled to the top of the neck. Start the tractor and fill the radiator until coolant just covers the top of the fins. This will give room for expansion. It may push some fluid over after it"s shutdown once warmed up, but it should"nt continue to do so. If the radiator will not flow due to build-up of calcium, rust, or other deposits blocking off the cooling tubes then the radiator will need to be removed and "rodded" out. In your case, the radiator is probably to fragile from age to survive being cleaned in this fashion. You would likely end up needing a recore job. This could cost as much as 1/2 the offer made on your tractor or more.
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