It might seem like a huge setback right now---but when those repairs are done, and the house goes back up for sale, all the needed work will pay for itself several times over. And you will feel better knowing you are a responsible seller with great integrity.

That new boss does sound like a nightmare, yikes! How did she ever climb the ladder to get where she is? By horrifying and terrorizing people? I'm glad you've got an exit strategy in place.