Seller math
Cash offer vs. price reduction: compare the Arizona net
A $400,000 cash offer and a $440,000 listing do not differ by $40,000 in the seller's pocket. One number may still require compensation, concessions, repairs, holding costs, and successful financing. Compare estimated net proceeds and contract certainty line by line.
The two equations
Estimated listing net = expected sale price minus negotiated broker compensation, seller closing costs, concessions, repairs, holding costs, mortgage and lien payoffs, and any other seller-paid items.
Estimated direct-sale net = contract price minus the seller-paid items stated in that contract, mortgage and lien payoffs, taxes, and any agreed credits or adjustments.
Mortgage and lien payoffs affect both choices and should not be used to make one option look better than the other.
Illustrative example, not a property valuation
Assume an Arizona house was listed at $450,000, received no acceptable offer, and the seller is comparing a 5% price reduction with a $350,000 as-is offer. The assumptions below are deliberately visible so they can be replaced with real numbers.
| Illustrative item | Reduced listing | Direct as-is offer |
|---|---|---|
| Starting price | $427,500 | $350,000 |
| Negotiated broker compensation (example: 5%) | -$21,375 | $0 |
| Seller closing costs (example: 1.5%) | -$6,413 | $0 if buyer pays as contracted |
| Repairs or buyer credit | -$25,000 | $0 before sale |
| Additional holding costs | -$5,000 | -$1,000 |
| Illustrative net before debt and taxes | $369,712 | $349,000 |
Under those assumptions, listing produces about $20,712 more before mortgage, liens, prorated taxes, and other shared deductions. A seller might decide that difference is worth the extra time and risk. Another seller might value the shorter, repair-free path more. Change one assumption and the answer changes.
Do not use a fake commission or fee assumption
Broker compensation is negotiable and is not set by law. Use the compensation in your actual listing agreement and any amount you expect to offer or pay under the transaction. Use a title or escrow estimate for closing costs rather than a generic percentage when possible.
Put time into dollars
Add mortgage interest, property taxes, utilities, insurance, HOA dues, yard and pool service, vacancy risk, and the cost of maintaining the home for the expected additional time. In June 2026, Realtor.com reported a 64-day median time on market in the Phoenix metro. That is not a guaranteed timeline and does not include every pre-listing repair or post-contract closing day.
Price is only one contract term
- Financing and appraisal: Can the buyer cancel or demand a lower price?
- Inspection: How long can the buyer investigate, and can the buyer cancel for any reason?
- Earnest money: How much is deposited, when, and when does it become nonrefundable?
- Assignment: May the buyer transfer the contract to another buyer?
- Closing costs: Exactly which title, escrow, recording, HOA, tax, and other charges does each party pay?
- Closing date: Is it firm, flexible, or controlled by one side?
Read our guide to assignment in an Arizona purchase contract and our 10-question cash-buyer checklist.
Red flags in any net-proceeds comparison
- Showing a high list price as if it were a guaranteed sale price.
- Using a commission number that does not match the seller's agreement.
- Ignoring repair credits, concessions, or holding costs.
- Calling an offer "net" while the contract makes the seller pay major fees.
- Comparing a firm offer with an estimated resale without explaining the uncertainty.
The Federal Trade Commission has taken action against misleading claims that a direct home-buying service would save sellers money compared with a traditional sale. The safe approach is simple: disclose the assumptions and let the homeowner verify the math.
Sources
Disclosure: AZ Home Cash buys houses for investment and may earn a profit. The example is educational, not an appraisal, offer, or prediction. Replace every assumption with property-specific figures.