Q: Our condo was listed for 325k, we were offered 332k by a military couple. We took their offer.
Our agent assured us the VA appraisal would surely cover difference. VA app. 325k. Is the buyer legally obligated to pay what they offered?
A: You need to read the contract, but I believe the VA rider is conditioned on the VA appraisal.
Ross Cameron Hart and Bruce Alexander Minnick agree with this answer
A: It depends on the exact terms of the contract of sale and you need to read that. Most standard real estate contracts used by brokers and agents have a "VA LOAN" clause which says that if the VA declines to finance the transaction the deal is off.
Bruce Alexander Minnick agrees with this answer
A:
It appears that the military couple really wants to buy your house because their offer exceeded your asking price by 7k.
The fact that the VA will not insure the condo for more than your asking price does not mean the deal has to end. Why? Because the potential buyers can put up their $7k in order to buy it. If your agent does not know this you chose the wrong agent; call a lawyer to help explain it to everyone.
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