This house sale is crumbling

The buyer for our river house is no longer. He has been a pain since the beginning, asking us unreasonable things. He submitted a final offer and we did not like the terms of what he thought was a good agreement, so we rejected the offer, and the house will be back on the market in one day. *sigh* He was having a hard time getting a good loan to buy the house, but since it is not a habitable property, he can't get a conventional loan - a construction loan only. He lied about his income (said he had renters in an apartment building he owns, but he doesn't have renters at this time), and neither Dave or I have had a super good feeling about this guy from the beginning. He wrote us a letter saying how disappointed he is in this whole thing. His realtor and him have worked really hard, but he just doesn't see things the way we do. He still really wants the house, but its just not working. We are going to proceed the direction of opening up another claim with our insurance company asking for the money to raise up the house. ICC is called "Increased Cost of Compliance" - and its coverage that pays to raise the house up because we have to comply with the city's guidelines for rebuilding. We think if we can get the insurance company to pay for it, we could sell the house later on. Maybe the same buyer would make an offer, who knows. But the road is still long, back to square one.