Being Sued for backing out of a Deal - What am I liable for?

[Joseph Janarski]

*Disclosure I am speaking to an attorney on the matter this week, but wanted to share and see if anyone has had a similar experience or knowledge in this matter?

So unfortunately my contractor was late in getting me a quote on all the work that needed to be done on a property by one day over the inspection clause. Realizing we passed the date and the amount of money to get this property rent-able would be astronomically higher than what I thought it would be I had to back out I told the seller that I would forfeit my earnest money in good faith and not try to reclaim it.  The seller was not happy due to the fact that this house has been on the market for over 90 days (was off market for 11) and is now threatening to sue me for the difference in my offer price vs. whatever they end up getting for the property?  

I've heard of people getting sued for damages if their is financial harm (i.e they are trying to move out of their house and buy a new one, but now can't due to backing out of the sale), but nothing to the extent of backstopping what my offer was vs what they ultimately sell it for? Based on their attorney letter it feels like they are trying to bully me into purchasing this house because they said they "are willing to reconsider suing me if I purchase the property".