FHA or Coventional offer

[Account Closed]

I am selling a house and have 11 offers. The house was listed for $170k. Leading two offers are below. What would you choose or counter?

$180k-FHA loan 3.5% down no request for warranty or closing costs. Buyers agent offered to reduce to 2% which adds $1800. The also offered to pay the remaining taxes of about $3k

$185k-Conventional loan 5% down no request for warranty or closing cost.

Main concern is that it does not appraise for $185 it might be possible to get an appraisal of $180.

My thought is to ask the conventional loan to cover up to $7500 over the appraisal and if not take the FHA offer.

What do you think?

[Evan Polaski]

@Account Closed I am a third vote for conventional. Most of the time properties sold in a true arm's length transaction will appraise. I would be sure to provide the appraiser the first page of the FHA offer as well, to show that there are multiple parties interested around the same price.

Personally, I wouldn't add hair to the deal now with the conventional offer.  Accept it, and then see if it doesn't appraise and cross that bridge if needed.  But trying to ask them for some guarantee on covering a shortfall only gives them pause.