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Make sure you have all of the following to sell him:

  • Indigo Key (left of the Looming Gate) 
  • Yellow Key (on the way to the Hardware Store)
  • Red Key, Green Key, and Valiant Sword, which you have to have to get to the hardware store in the first place. 

Hope this helps, I'm glad you liked the other parts! 

Sweet thanks! I restarted and went back to the store and had enough money to buy the key and finish the game (I actually got jumpscared at the end). I dont know why I didnt have enough money the first time, maybe I was just being dumb