Ugh. I hate bullies, and that is what these people are, if they are trying to intimidate you into not pursuing it. I completely understand not wanting to antagonize them, but on the other hand, you are going to have to pass that house anyway, and do you think it is going to be less scary if you have let them intimidate you into not making them pay for the damage they caused?

That's a real question, not a rhetorical one. I would not really blame you if you decided to let it go for the sake of neighborhood peace, but me, I would probably be so mad at the attempted intimidation that I would say, fine, see you in court. I mean, it's not like they have a defense, right?