Selling old iPhone 3g - erased, removed sim questions for new buyer

I have an old 3g that we have service turned off on, i did the erase all content thing and removed the sim, phone restared and said I needed to hook it up to itunes and it needed the sim againput the sim back in, got the phone back to what looks like day one (then removed the sim after itunes set it up as a new phone vs using exsiting restore or backup).
So now the phone has no sim and everything appears to be there in terms of the basic apps nothing i can see has any of my info or history on it.
My question is if I sell this like this how does the new buyer install apps on it thru the app store, i can access wifi and watch youtube stuff but when I tried to install a free app but it just keeps asking for existing or new acct, if they setup a new acct and that 3g has no sim card will they be able to access and download content to it (also if they setup a new acct in itunes can they purchase apps with that too)?
I am pretty tech dumb when it comes to that sort of thing, noting sensitive on the phone realy even before the erase, but if i sell it like this I just didnt want the new buyer to somehow be able to buy apps on my acct (the itunes existing acct stuff is all blank I checked it), but i do want them to be able to get apps on the phone for their own use thru wifi so I am guessing they just have to create their own itunes acct and then even without the sim it would let them grab apps?
Or do they need a sim, if so will att give them a blank or is the phone basically useless without it (I thought I heard never give out my sim even tho the phone is deactivated I wasnt sure on security).
Thanks for anyone who can clear this up for me, don't wanna sell it and find out i didn't follow some rule of safety for my own acct etc.
Bill

Settings > Messages > iMessage > Off
Settings > FaceTime > Off
Settings > iCloud > (Scroll Down) Delete Account
Settings > General > Reset > Reset All Content and Settings.
In that order and you're good. I've never removed a SIM before selling and I haven't had any problems. Also they would need a new SIM to activate sevice so any potential for your information going to the device after sold is gone.
Hope that helps

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Yes i did remover the sim and put it back in. shut down, removed sim re booted up did a network reset and installed the sim.
no change
I have way better reception outdoors than indoors, cases do not seem to mater for me.
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