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?

Right now I'd pick conventional over FHA any day, ESPECIALLY if there are things about the house that might not go your way (foundation, siding, roof, etc). FHA can be very nit picky right now, and conventional still mainly just does appraisals.

Too many variables but I would likely lean towards the $185 offer. They're putting more down, which indicates they may be more serious.

A bigger issue is the condition of the home. Someone may offer you a higher price, lock you in, and then try to reduce the price by asking for repairs or a reduction when the appraisal doesn't come in at the right price.

I would probably take it and move forward. If it falls through, put it back on the market and try again.

@Will Fraser

thanks I was wondering what the hot button items were for FHA all cosmetic items are new and it is a slab on grade. But I didn't put a new roof on or update the mechanicals

@Jared Greive 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.

@Evan Polaski

Thanks. We ended up have two more more conventional offers and the highest did sweeten the deal by saying they would pay $5k over appraisal.

Thanks for all of the comments!

Conventional As there is less risk for the bank