The other more honest half, along with fear of reprisal, says just send the $ back.Do they have any legal recourse if I don't send it back?

As long as they are/have been pro active getting bookings and not fearful of what 'might' happen, they are still cash flowing, so most are sticking to their guns and hoping that buyers will eventually accept the evolving market we are in and pull the trigger.Inflation has affected American travelers that would typically drive here, but overall, I'm hearing that bookings are still quite strong due in part to Foreign travelers still having high demand.

This sort of strategizing (not analysis) is probably the only thing to help with your “fear/conundrum”

My fear is the devil is in the details.

If they don't accept your offer so be it and do it again.You can't predict if this market is going to stabilize, crash, soft crash, hard crash, gradually rise, or become a sellers market again.Or 1031 exchange the property into a larger one in the future.Most keyboard jockies are always scared to make a move and are spreading fear. 

Most riches have been made in times of fear! 

When the pandemic hit we took out an equity line and I pulled all the cash out and put into a savings account out of fear that they would cancel the equity line if we did not use it.

It's too obvious of a position and is baked into the market at this point.Even if there is a crash, people who have been sitting on the sidelines out of fear will be too scared to actually step off of the sidelines.

Is it just Fear? 

She needs to buy again and people fear what they don't fully understand.