Now, here's the catch-22, you probably can't make a good decision on whether you need a lawyer without talking to a lawyer first. Or, if any part of this process is confusing to you, then you should talk with a lawyer.
If you're looking to back out of a sale that's in escrow, the buyer would probably file a lis pendens against you to enforce specific performance. If you got that, then mediation is one way to resolve it. If not, then you can be civil and hope the buyer handles the situation with you like a grown-up without getting lawyers involved.
If you do go down the dark path of mediation, then prepare to spend a minimum of $3K for your half of the mediation costs, even if you represent yourself. If you do get a lawyer, then the sky is the limit on the costs involved. I've heard of parties dropping $100K on lawyers over a $600K house, just silly. And, yes, you can bring your lawyer into your mediation. Now, if you can't resolve it with mediation, prepare to spend at least 4 times more on an arbitration and a year of your life.
Hence, I prefer the grown-up way of just working things out.
The question would be; Did the Buyers and you, initial the boxes for Arbitration and Mediation?
The Second question would be: Does Arb/Med cover you trying to back out of the Contract?
I don't know.
That may be a question for a lawyer.
When you accept Arb/Med you are saying that you do not need, and will not hire a Lawyer; that you will ACCEPT the decision of an ARBITRATOR or MEDIATOR.
Now; do you understand the difference?
If you want to hire a Lawyer to go with you; they will probably not allow the Lawyer in the room with you.
If you don't understand this; then you probably shouldn't have marked that box on the Contract.
"I'm getting threats from the buyers lawyers." If they have an attorney you probably need an attorney just to have a level playing field.
If you have agreed to Arbitration and Mediation, my understanding is that the buyer's have given up their right to sue you in court but neither buyers nor you have given up your right to legal counsel or representation by an attorney.
After you've signed a contract and opened escrow is not the best time to change your mind. What were the original goals that motivated you to sell in the first place? And have those goals changed or are you just having a bit of remorse for leaving your home? I would immediately meet in person with your Realtor and go over the contract and discuss the reasons behind you wanting to cancel and discuss a viable solution. Good luck and let us know how it all turns out for you.
Keller Williams Realty