FHA loan listing price and appraisal value

[Sai T.]

Hi Everyone 

I need your suggestions and help.

I’m have listed a home for 189K.

Got an offer $185K and 8,500 closing credit.

I counter offered and gave 2 options.

1) If I get full price and I offer $7,000 closing credit 

Or 

2) purchase price $185K and $2,500 closing credit 

Buyer’s agent came back with option 3 :-

Purchase price $191K and credit $8,000 closing credit.

I agreed but I said what if appraisal value comes low. Buyers agent said we will lower the concession amount.

Buyer taking FHA loan $186K. Shouldn't agent put $186K instead$191K ?