This used to be a non-issue for FHA buyers up until 10 years ago when HUD stop allowing buyers to use their appraisalsKeep in mind your agent is not dealing with HUD directly. 

We have a buyer for the property and now it has been discovered that the corporation paperwork was submitted to the state as a charitable contribution even though we are listed as a not for profit organization and have been listed this way for well over 40 years.

So the buyer's technique got them a $100,000 price reduction.

As San Diego gets priced out, tenants and home buyers have to go somewhere. 

Note: Our initial goals are to wholesale to build immediate working capital (targeting $150k) and hold for cash-flow to build 10k/mo FCF (free cash-flow).We have made some cash buyer connections, identified and underwritten potential deals on hundreds of current deals, and developed professional relationships in our target community (cleaning, construction, governmental). 

We let them rep us on the buy & resale once it's renovated/built, and they are happy to try and work with us on a deal where the seller wants an all-cash, quick close, or the home won't work for conventional lenders/end-buyers, etc.It is hard to find 60-65% of ARV deals, but that's why we are still around!

Many buyers/investors are using this strategy to invest in real estate.- get into real estate with a lower rate and lesser percentage down payment.

What are they suggesting you off the buyer’s brokers, another 4-6%?  

I know I just ratified a transaction where I was selling a new build ( not yet built) and the broker representing the buyer had a very high buyers broker agreement that simply does not work for builders and what we have to do to manage the process.

You can reevaluate selling in a few years when interest rates improve and more buyers get into the market