Novation isn’t just a different kind of contract. It’s a different timeline altogether.

If you’ve only done wholesale or fix-and-flip deals, this new structure can feel a little unfamiliar. But once you understand the steps, you’ll see why smart investors are adding novation to their toolkit in 2025.

This guide breaks down the full timeline of a novation deal, from the first seller call to the final wire at closing, so you know what to expect, how to move fast, and where the profit really lives.

Why the Timeline Matters

When you understand the phases of a novation, three things happen:

• You don’t lose momentum with the seller

• You avoid scaring off buyers or agents

• You close faster, and with fewer surprises

So let’s map it out, step by step.

Phase 1: Seller Conversation + Framing the Novation

This phase is all about positioning.

The goal: get verbal agreement from the seller to explore something other than a cash sale or traditional listing.

Here’s what happens:

• Initial conversation about their situation

• Cash offer made (often rejected)

• Novation option introduced: “What if you could still get your number, without the showings or repairs?”

• You pitch the benefits, not the structure

• The seller agrees to see the paperwork

Timeframe: 1–3 days after first contact

Phase 2: Agreement Signed

Once the seller agrees in principle, you move to paperwork.

You’ll use:

• Your novation contract (or addendum to your standard PSA)

• A limited POA or authority clause to list/market the property

• Any disclosures required by your state

At this point, they’re agreeing to let you take over the marketing, while you agree to take on the costs and risk.

Timeframe: 1–3 days after agreement in principle

Phase 3: Light Cleanup / Staging / Prep

Unlike a flip, you’re not doing full construction here.

But to attract a retail buyer, you may:

• Haul away junk

• Do basic landscaping

• Paint or touch up trouble spots

• Clean and deodorize

• Replace minor eyesores (light fixtures, hardware, etc.)

Remember: this is your money, so don’t overdo it. Just make it “MLS ready.”

Timeframe: 2–5 days, depending on the condition

Phase 4: Retail Listing Goes Live

You (or your agent partner) list the property on the MLS.

Key points:

• Seller still technically owns it

• You disclose your interest (check your state law)

• You control the pricing strategy

• You handle showings and buyer agent calls

• You offer a buyer agent commission (just like a normal listing)

This is where novation differs from wholesale: you’re going after retail.

Timeframe: 1–3 days after staging is done

Phase 5: Buyer Offer Received

The retail buyer comes in with an offer.

This is a regular buyer, using conventional, FHA, or VA financing. They don’t know (or care) that it’s a novation. They’re just buying a house.

Once an offer comes in:

• You (not the seller) negotiate and sign

• You send paperwork to escrow/title

• You notify the seller of the offer, in writing

• You update your novation agreement with the final price and terms

Timeframe: 7–21 days after listing (in normal markets)

Phase 6: Buyer’s Inspection + Appraisal

You’re in contract, but it’s not over yet.

Buyer’s agent orders an inspection and appraisal. You’ll need to:

• Be present for the inspection (or your rep)

• Respond to repair requests

• Potentially negotiate price credits

• Hope the appraisal comes in clean

Because it’s retail, you’re subject to the same back-and-forth as any listing agent.

Timeframe: 7–10 days post-acceptance

Phase 7: Closing Process Begins

Once contingencies are lifted and the loan is cleared:

• Escrow prepares final documents

• Seller signs closing documents

• You review the final HUD to confirm your fee

• Buyer funds the loan

• You and the seller both get paid

IMPORTANT: You’re paid through the assignment or novation clause in your agreement, not via a traditional wholesale fee.

Timeframe: 7–14 days after contingencies clear

What a Full Novation Timeline Looks Like

Here’s the full sample timeline:

Total timeline: 30–45 days on average

What Slows Down a Novation Deal?

Be aware of these common speed bumps:

• Seller hesitation on giving access

• Title issues (especially with inherited or distressed property)

• Confusion around the novation structure

• State laws requiring extra disclosures

• FHA buyer requirements that trigger repairs

• Miscommunication with agents or escrow

Most of these are preventable with clear framing and strong follow-up.

How to Keep It Moving

Here’s how smart investors stay in control of the timeline:

• Set seller expectations up front

• Use checklists for each phase

• Partner with investor-friendly agents

• Pre-vet title companies that understand novations

• Avoid high-risk buyers (unverified financing, etc.)

• Stay on top of follow-ups every 48–72 hours

Pre-Sell the Process to the Seller

Your seller isn’t used to this.

If they think it’ll close in 7 days like a cash deal, they’ll get nervous.

So tell them:

“This works a little differently, it’s more like a traditional sale, but I cover everything behind the scenes. It usually takes 30–45 days, but you won’t lift a finger.”

When they’re informed, they stay confident. When they’re confident, they stay committed.