FHA Buyer and credit/concession for closing

[Sai T.]

Hello Everyone 

I have $200K full listing price offer from FHA buyer but condition is to credit/concession $8,000 for closing cost.

Issue is that buyers agent adding a condition in the contract if the appraisal is less than listing price $200K then buyer will renegotiate the credit/concession amount.

Sellers net will be $192K if there’s no issue with appraisal value but if appraisal comes $195K buyers still wants $8,000 but I want offer $3,000. Who’s right? And what I can do 

Thank you for your feedback 

[Bill Plymouth]

@Sai T. no one is “right”.  Each side has terms they want met.  You have to meet in the middle if you want the deal done.  

Why do you think the property won’t appraise?  If you’ve run your comps correctly, then their shouldn’t be an issue.  

I would offer a 2.5% (5k) sellers assist contingent on the appraisal coming back at asking price(if appraisal is that big of a concern).  If the appraisal comes back lower, you need to renegotiate.