Buyer did not negotiate in good faith

[Mike Dinh]

WE rehabbed a property in Wilmington, DE and put on market after 2 months. We signed a contract for $5000 under asking price and was set to close with in 30 days. Their inspection came back with items for us to repair, including suspecting of termite, heater was operating but making noise and there are signs of rust, along with some more minor items. We came back with $3000 credit and we will take care of the termite. They will have a 1 year house warranty. They came back with they want us to release the contract and give deposit back, without giving us the chance to fix the items from inspection report. I think we have the right to sue for damages since we already declined 15 showings after we signed contract with them, and those potential buyers would have negotiate in good faith. We are not giving back deposit money but is it worth pursuing damages? Thank you all for your insight.