Novations

A real estate novation is an agreement where a homeowner allows a real estate investor or company to market and sell their property to a new buyer while the homeowner keeps ownership until closing. Instead of purchasing the home directly, the investor negotiates the sale, often helping the homeowner get a higher price than a traditional cash offer. Once a buyer is found, a new agreement replaces the original arrangement, and the property is sold to the end buyer at closing.

Novations can benefit homeowners who want to avoid repairs, sell quickly, or maximize their home’s value without handling the sales process themselves. Every novation agreement is different, so homeowners should review all terms carefully and understand fees, timelines, and responsibilities before signing.

View the sample below to understand how this option works: