FHA loans /seller's side

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What is involved with an FHA loan from the seller's side?
I just got a call from an agent to show my house, her client is using FHA.
What does that mean to me as seller?

The house is listed for $127, 775.
Is it worth it to accept FHA, or is it too costly for a seller? Of course that's an individual decision, but what can I expect? Do most reasonaable sellers accept cash, conventional, and/or FHA financing?

The agent asked if there had been much interest in it yet. I said, some, but of course not as much as I'd like to have had. Why does she care about the amount of interest so far? (Two weeks on mls)

Thanks
Ofgift