Most wholesalers and investors walk away the moment a seller says, “I want full price.”

But what if you didn’t have to?

What if, instead of trying to talk them down, you could give them exactly what they want…
and still make money?

That’s where novation agreements come in. They allow you to meet a seller at their asking price without having to assign the contract or close on it yourself.

In this article, we’ll break down exactly how to pitch a novation to sellers who want retail, and show you why this is one of the smartest ways to win deals others walk away from.

First, Understand the Seller’s Psychology

Before we get into the script, let’s look at what’s really going on when a seller demands full price:

• They believe their home is worth more than what investors typically offer

• They don’t want to feel like they’re “giving it away”

• They’re emotionally or financially attached to a specific net number

• They’re not in a rush, they’ll wait if they think it means more money

• They might be open to a new option, but only if it doesn’t sound like a lowball offer

If you come in with a typical “70% of ARV minus repairs” formula, you’ll lose them immediately.

Your job? 

Frame the novation as the only way to get what they want, without the hassle they’re trying to avoid.

Why Novations Work for Full-Price Sellers

Novation deals allow you to:

• Lock in a fixed net price for the seller

• Market the home to retail buyers who pay closer to ARV

• Avoid transactional funding or double-close fees

• Get paid the spread between what you sell it for and what the seller nets

That means you can say yes to a full-price seller, as long as the market supports a higher resale price.

Let’s say:

• Seller wants $260K

• You believe the property could sell for $295K as-is on the MLS

• You pitch a novation at $260K net to the seller

• You list, find a buyer, and sell at $295K

• You pocket the $35K spread minus closing costs and marketing

No lowball offer. No confusion. Just a different structure that gives the seller what they asked for.

The Setup: Laying the Groundwork

Before you ever say the word novation, you need to plant the right expectations:

Ask:

“Are you mainly focused on getting a specific number, or selling it quickly?”

If they say they want a certain number, but aren’t in a rush, they’re a candidate.

Next ask:

“If I could help you walk away with that number, without repairs, without paying commissions, would you be open to a different type of agreement that’s designed for situations just like this?”

If they say “maybe,” you have your opening.

Important: Never say “I’ll pay full price” unless you’re going to explain how it works.

The Core Pitch: Explaining a Novation Simply

Use plain English. Avoid legal terms. Keep it focused on benefits.

Here’s a basic framework:

“Here’s what I can do, and it’s a structure that’s helping sellers like you walk away with the price they want.”

• “You stay on title during the process. I don’t actually close on it myself.”

• “I’ll bring in a buyer who’s getting a loan, usually through a bank or traditional financing.”

• “That buyer pays full price, I get paid on the difference between what you want and what they pay.”

• “There are no commissions, no out-of-pocket fees, and your net is locked in at the start.”

• “I’ll handle all the showings, paperwork, and buyer interaction. You won’t have to do a thing.”

“It’s basically like having an agent, but instead of charging you, I bring the buyer and keep the extra.”

That last line helps them reframe what you’re doing. You're not “buying low”, you're solving a problem and making their price work.

Objection Handling: What Sellers Ask (and How to Respond)

“How do I know I’ll get my number?”

“It’s written in the agreement. We lock in your net amount, and that’s what gets paid on the HUD. You don’t take any risk on the sale price.”

“What happens if the buyer backs out?”

“Just like with any sale, buyers have timelines and contingencies. But I only move forward when I know we have a solid buyer in place, and I manage the whole process.”

“What if my neighbors find out the house is for sale?”

“It will be marketed, yes, but I can be discreet about photos, showing times, and any sensitive details. It won’t say ‘motivated’ or ‘distressed’ or anything like that.”

“Are there any hidden fees?”

“No. Your net number is locked in. If title or escrow fees come up, I pay them. That’s part of how I earn my profit.”

“Why don’t you just buy it yourself?”

“I could, but I’d have to offer less to account for financing, repairs, holding time, and risk. This structure lets you get your number and lets me earn a return without tying up hundreds of thousands in cash.”

The Close: Locking in the Agreement

Once the seller understands the benefits, you must move quickly to get a signed novation agreement and begin preparing for MLS marketing.

Your next steps should include:

• Sending over a novation agreement with clear terms (ideally drafted by an investor-friendly attorney)

• Scheduling photos or walk-throughs for MLS listing prep

• Working with a title company that understands novations

• Giving the seller a clear timeline for when to expect offers and closing

Reminder:
You are not locking in a typical contract-to-close wholesale deal. You’re locking in a relationship that leads to a retail resale, and that requires transparency.

When It Doesn’t Work

Not every full-price seller is a novation fit. Here are red flags:

• The seller wants cash and full price fast

• The seller is in pre-foreclosure and has a strict deadline

• The seller doesn’t trust you enough to leave the property in your hands

• The property has serious issues that won’t pass retail lending requirements

• The seller won’t allow showings or access

In these cases, you may be better off walking or offering a creative finance deal like Subto, instead.

But when the seller is reasonable, realistic, and focused on net, novation wins.

Pro Tip: Use Visuals and Net Sheets

Many sellers need to see how it works before they believe it.

Use a simple net sheet that shows:

• Seller gets $260,000

• Buyer pays $295,000

• Title pays you the difference at closing

• Seller pays $0 in commissions

• Show an example HUD from a past novation

• Have a short explanation video (recorded on Loom) walking through how you help sellers this way

The more confident and prepared you are, the easier it is to earn their trust.

Real Example: How One Investor Made $47K from a “No”

Here’s a quick story:

• A seller wanted $270K for a property that needed cleaning and minor cosmetic work.

• Most wholesalers offered $220K–$240K.

• The investor offered a novation at $270K net.

• He listed it for $299K after light staging and showings.

• It sold for $305K.

• The investor made $47K after title fees, without touching the property.

• The seller got their number.

• The buyer got a nice house.

• The investor got a fat check.

All from saying yes to a price others ran from.

When the Seller Wants Full Price…

…don’t try to argue.
Don’t try to lowball.
And don’t walk away, not yet.

Instead:

• Ask what they really want (often it’s a certain net number, not the listing price)

• Offer a novation structure that guarantees their net

• Explain it simply, clearly, and confidently

• Handle everything: marketing, paperwork, coordination

• Get paid the spread (often more than a wholesale fee)

You’ll win deals other investors ignore. You’ll make more per contract. And you’ll build a reputation as someone who offers real options, not just offers.

That’s the novation edge. Use it.