Why do cash offers vary so much between buyers?

Different buyers have different business models. Wholesalers pay the least because they resell the contract to another investor and add their fee in between. Fix-and-flip buyers pay more but must cover renovation, holding, and resale costs. Landlord buyers who plan to rent the home can sometimes pay the most because they don't pay resale costs. The same house can get offers tens of thousands of dollars apart, which is why owners should collect more than one offer and ask every buyer to show how they got to their number.

What is the 70% rule in real estate investing?

The 70% rule is a common investor rule of thumb: pay no more than 70% of a property's after-repair value minus repair costs. Many Arizona buyers use it as a starting point and adjust up or down for the house's condition, the neighborhood, and market conditions. In competitive markets, offers often land above the strict 70% figure.

Do sellers net more by listing with an agent instead of taking a cash offer?

Often yes for a house in good condition — retail buyers pay more than investors, and that difference usually exceeds the commissions and costs of listing. For houses that need significant work, the gap narrows or reverses once repair costs, agent commissions, seller concessions, months of taxes, insurance and utilities while listed, and the risk of a financed buyer falling through are subtracted. The honest answer depends on the specific house, which is why running both paths side by side matters.

How can I tell if a cash offer is fair?

Ask the buyer to show their math: the after-repair value with the comparable sales they used, their repair estimate, and their costs and margin. A legitimate buyer will walk through every line. Also ask for proof of funds, whether they intend to assign the contract, and what their earnest money and inspection terms are. A buyer who refuses to explain their number is telling you something.

Seller guide

How much do cash home buyers actually pay in Arizona?

Q: How much do cash home buyers pay in Arizona?

Legitimate cash home buyers in Arizona typically pay roughly 70% to 85% of a home's after-repair value (what it would sell for fully fixed up), minus the cost of the repairs the house needs. A house that would be worth $400,000 renovated and needs $40,000 of work would commonly draw cash offers in the $240,000–$300,000 range depending on the buyer, the risk, and the market.

By the AZ Home Cash team — local Arizona home buyers · Last updated July 11, 2026

The short answer: legitimate cash buyers in Arizona typically pay roughly 70% to 85% of a home's after-repair value, minus the cost of repairs. The long answer — why the range is that wide, where your house would land in it, and when listing nets you more — is below, with real numbers.

The number every cash offer starts from

Every serious cash buyer works from the same equation, whether they show it to you or not:

What the house would sell for fully fixed up (the "after-repair value," from recent sales of renovated homes near yours) − repair costs − the buyer's operating costs − the buyer's margin = the offer.

Investors often start from the "70% rule" — a rule of thumb that says pay no more than 70% of after-repair value minus repairs — and adjust from there. In practice, Arizona offers commonly land anywhere from the low 70s to the mid 80s as a percentage of that fixed-up value, before subtracting repairs. What moves the number:

How much work the house needs. Bigger renovations mean more risk of surprises, so buyers pad more. A house needing paint and carpet prices tighter than one needing a roof, AC, and a kitchen.
Who the buyer is. A wholesaler resells your contract to another investor and adds a fee in the middle — so they pay the least. A fix-and-flip buyer carries renovation and resale costs. A landlord buyer keeps the house as a rental, skips resale costs, and can sometimes pay the most. Same house, very different offers. (Arizona law — A.R.S. § 44-5101 — requires wholesalers to disclose that they're selling a contract, not the house. Our guide to comparing cash offers covers what to ask.)
Price band and neighborhood. Offers on homes near the metro median (where resale demand is deepest) tend to run at the higher end of the range; unusual or high-end properties price more cautiously.
The market's temperature. When renovated homes are selling fast, buyers compete and stretch. When the market cools, everyone's math gets more conservative.

Three worked examples

Round numbers, the same math a buyer runs. "ARV" is the after-repair value — what the fixed-up house would sell for.

Light work. ARV $400,000, needs $15,000 (paint, flooring, landscaping). At 80–85% of ARV minus repairs, offers land around $305,000–$325,000.
Medium work. ARV $400,000, needs $40,000 (kitchen, baths, AC). At 75–82%, offers land around $260,000–$288,000.
Heavy work. ARV $400,000, needs $80,000 (roof, systems, full interior). At 70–78%, offers land around $200,000–$232,000.

If offers you're getting sit far below these kinds of ranges for your house's condition, someone is either seeing repairs you aren't — worth asking about — or hoping you won't run the math.

The honest comparison: cash offer vs. listing

An agent-listed sale usually brings a higher price — retail buyers pay more than investors. Whether it brings more money in your pocket depends on what listing costs you. Take the medium-work example ($400,000 ARV, $40,000 needed):

Listing route: spend $40,000 on repairs before or during the sale (or accept a lower price that reflects them), then subtract roughly 5–6% in agent commissions, 1–2% in seller closing costs and buyer concessions, plus 2–4 months of taxes, insurance, utilities, and mortgage payments while the house sits — and carry the risk that a financed buyer's loan falls through at the finish line.
Cash route: take an offer in the $260,000–$288,000 range as-is — no repairs, no commissions, standard closing costs covered, closing on your date, no financing risk.

For a house in good shape with an owner who can wait, listing usually nets more — sometimes a lot more. For a house that needs real work, or an owner on a real deadline, the two paths often land surprisingly close once everything is subtracted — and the cash path is weeks faster with none of the carrying risk. Don't take our word for either claim: run your own numbers in our cash offer vs. listing calculator.

How to pressure-test any offer you get

Ask to see the math. ARV with the comps used, repair estimate, costs, margin. We publish exactly how we calculate ours, and any buyer worth dealing with can do the same. A buyer who won't show the math is your answer.
Ask for proof of funds and whether they intend to assign the contract to someone else.
Get more than one offer. The spread between buyers on the same house is regularly five figures.
Watch for the re-trade. A common trick: a high offer to win your signature, then a big price cut after "inspection." Ask what their inspection terms are and how often they close at the original number. Our 10-questions guide covers the rest.

Frequently asked questions

How much do cash home buyers pay in Arizona?

Typically roughly 70–85% of the home's after-repair value, minus repair costs. A $400,000-when-renovated house needing $40,000 of work commonly draws offers in the $260,000–$288,000 range, depending on the buyer and the market.

Why do offers vary so much between buyers?

Different business models: wholesalers pay least (they add a middleman fee), flippers carry renovation and resale costs, and landlord buyers can sometimes pay most. Always collect more than one offer.

What is the 70% rule?

An investor rule of thumb: pay no more than 70% of after-repair value minus repairs. It's a starting point, not a law — in competitive Arizona markets, real offers often land above it.

Would I net more by listing with an agent?

For a house in good condition, usually yes. For a house needing significant work, the gap narrows or reverses once repairs, commissions, concessions, holding costs, and fall-through risk are subtracted. Run both paths in our calculator.

How do I know if an offer is fair?

Ask the buyer to walk you through their math and show proof of funds. Compare at least two offers. If a buyer hides the numbers, walk away.

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We buy houses as-is in Phoenix, Mesa, Tucson, Scottsdale, Chandler, Glendale, and across Arizona — and we show the math on every offer.

Disclaimer: The percentages, examples, and cost figures on this page are general market information and rules of thumb, not a quote, appraisal, or promise of any specific offer amount — from AZ Home Cash or anyone else. Every house, buyer, and market moment is different. This is not legal, tax, or financial advice; confirm your specific numbers with the professionals of your choice before making decisions.