Buyer wants all siding replaced and roof!

[Tara G.]

We bought a SFH at the courthouse auction, put in very nice upgrades, fixed all the issues that our inspection identified, staged it, on the market in 5 weeks. Had 2 offers in the first week, accepted one with a 3-week due diligence period (don't ask, new Realtor Form doesn't have contingencies, only a walk for any or no reason for the buyer, with a due diligence fee). Got inspection report, many little items, some siding items. We said we would take care of everything. We'd had rotten siding replaced and painted the whole house, inside and out, including trim. Buyer gets a siding and roofing "inspector" to look at the home. Said "inspector" (read roofing and siding installer) said, need to replace entire siding and roofing, basically spooking the buyers. Buyers have about 1000$ besides EMD invested in the deal, in fees, inspections etc- all non-refundable. Second time home owners, seem to be good people. We want them to have a good home, but replace all siding and roof when there are no issues? Home is about 20 years old.

How would you deal with this? We'd lose about 3-4 weeks of on-market time if this tanks.