I wouldn’t be so sure. You are dealing with all kinds of people in the world. I have never had this particular situation but I am aware cases where a stubborn seller gives a buyer hell. What would you do if the seller requested mediation?
I am sure. Although what you say is true in theory, given the circumstances is unlikely since I know this seller needs to sell. I would say no to mediation since there is nothing to mediate, the issues I dsicovered were NOT revealed but knowable by the sellers and were not disclosed, care to mediate that? No way the sellers would win.
The odds of someone haggling over earnest money and risk tying up the property for months is small, but I appreciate you mentioning and have duly considered the possibility, but am not worried since they will have not performed in accordance with buyers request for repairs and other reasonable requests.
the bottom line is in escrow, a buyer has certain rights that allow them to cancel.