My finance and I just put an offer on a house that has been on the market for over 107 days. It is a normal sale. The house needs some work as it hasn’t been updated since the 70’s. There were some additions that were permitted, one they aren’t sure if it is. The owner inherited the house and isn’t very smart (according to his agent) and really only looks at the total dollar value of the offer. We came in with the price he wants (according to his agent) with a conventional and 20% down. He has another FHA offer slightly higher than ours ($5-10K)and the buyers said they would waive the termite inspection (which I don’t think FHA will go for). My question: Do I get in a bidding war with the other people or stand firm? This is the first property we have made an offer on but it is in an area that we want and there isn’t much available. Because of the condition of the house I question whether FHA will approve. I want to tell them that if they take the FHA offer we will be coming back with a lower bid if the FHA isn’t accepted. I guess the owner is pretty stubborn though and often doesn’t even counter if he doesn’t like the initial offer.