Breech of contract??

A buyer signed a contract to buy our house in Tx on July 1 and stated in the contract that they would take it "as is" and waived an inspection and the option period. The contract stated that they wanted to close and occupy the home no later than July 13. The buyer put $1000 in ernest money on the home. We gave them a disclosure notice along with an inspection that was done in june by another perspective buyer. In the contract it was stated that they only improvements that they wanted us to do was remove a partition in the garage (I made this into a home office in 1997). We fulfilled our part of the contract, the buyer was approved for the mortgage and the house appraised for the amount. Now the buyer told us that they do not want the house because their realtor misguided them by not showing other homes that were cheeper in the same area. Now the buyer is not signing the termination papers because it also states that they must give us the ernest money. We have moved out of our home into an apartment (until our new home is finished) and are out a hefty amount of money. eg. deposits, rent, storage the cost of taking down the office, etc. What can we do??? thank you for your time

[HomeGuru]

Threaten to sue them for specific performance and breach of contract if they do not agree to forfeit their deposit and sign the cancellation documents.

Note: you should not use the home inspection report that you have because the report was done for a specific Buyer that did not buy. (unless you paid for the inspection) The report was not to be used by third parties. Ask the inspector to be sure and I'm pretty sure the answer would be No.