Sorry for your trouble. You did the right thing by getting your lawyer involved.
You should get your earnest money back in full and your inspection costs
and appraisal fee. Start looking at other homes just in case the seller
remains steadfast about not selling.
good luck working things out
Since there is an Attorney involved, you should direct your questions to them as a lot of Realtors have advised below. Seller cannot be forced to sell their home. However the seller should pay up your costs fr any appraisal and home inspection cost that you have incurred.
Move on... there might be somethin better for you out there.
Simply put, if the Seller does not perform then they are in breach of contract. Trulia is not the forum for legal advice, so the following is just opinion.
As John points out, there is now a lawyer involved. The Buyer's lawyer may attempt to seek an order of "specific performance", which is an order of the court which requires a party to perform a specific act, usually what is stated in a contract. It is commonly used in the form of injunctive relief concerning confidential information or real property.
In general, I would agree with Rebecca's comment; however, if there are specifically unique characteristics of the home such a conclusion may prove challengeable from a legal perspective. After all, a custom home perched on a restricted coastal cliff is much different than a subdivision home.
As Eric suggests, completely understanding the Seller's situation before acting can save all involved from unnecessary stress that a lawsuit will readily supply.
Best of luck,