What goes into a cash offer
A serious offer starts with recent comparable sales, the property's condition, the likely repair scope, holding and transaction costs, the exit plan, neighborhood demand, and the risk the buyer is accepting. A cash offer is not the same as a retail list price because the investor is buying the work, uncertainty, and time along with the property.
Fees and commissions
On a direct cash purchase, the seller typically is not paying a traditional listing commission because the property is not being listed for that purchase. Other closing costs, credits, and fees are negotiable and should be stated in the written contract. If you choose an MLS listing, broker compensation and other anticipated seller expenses should be explained in the listing agreement and estimated on a seller net sheet.
Inspections and changes after the first number
Ask whether the number is a preliminary estimate, a written offer subject to inspection, or a firm offer after a walkthrough. A buyer may legitimately discover a condition that changes the economics, but repeated large price reductions after a seller is under contract can be a warning sign. The contract should make the inspection period, cancellation rights, and any repair or price negotiations clear.
Wholesaler or direct buyer? Ask before signing
A direct buyer intends to purchase the property for its own account. A wholesaler generally contracts to buy and then assigns the contract to another buyer. Arizona law requires specified written disclosure by a wholesale buyer before the parties enter into a binding agreement for qualifying residential real property. Ask who is buying, whether the agreement can be assigned, what earnest money is being deposited, whether proof of funds is available, and which Arizona title/escrow company will handle the closing.
See the full red-flags checklist →
Verify with an Arizona real estate attorney and/or CPA; this page is educational and is not legal or tax advice.
