Just do a MUTUALLY AGREE to end transaction . Nobody gets charged anything nobody suffers.

But it will cost you one of your FREE insertions. Or if you have used them all up you may have to pay for that insertion fee.

Im not to sure about that as it has just changed in that area, Maybe one of these harden sellers will know that. 

But at worse its $1.50 for most things under $100 i think cheaper for those with a store 50cent?.

If you want the $1.50 im shore the buyer would pay $1.50 not to get a strike and end it now. 

I know i would and it would be the right thing to do as they are the ones who want to cancel.

It is good of you  that you are willing to let the buyer off most sellers here demand payment.

Well done to you for being understanding.