Novation deals attract investors because they open the door to retail buyers instead of just wholesalers or cash investors.

Retail buyers usually mean higher prices and better margins. The catch is, retail buyers almost always come through the MLS. And the MLS belongs to licensed realtors.

That leaves investors and homeowners asking the same thing: should a realtor be involved in a novation sale, or can you skip them entirely?

The answer is, sometimes you need them, sometimes you don’t. What matters is knowing the trade-offs so you can decide deal by deal.

When you don’t need a realtor

There are scenarios where paying a commission to a licensed agent doesn’t add value. In these cases, skipping the realtor keeps your margins intact.

• You already have a buyer
  If you’ve lined up a retail buyer through your own network, marketing, or investor relationships, there’s no reason to pay an agent to open the MLS.
  
  
  

• The property isn’t a fit for MLS
  Some homes need so much work that no buyer using traditional financing would touch them. If the property will only attract cash or hard money buyers, MLS exposure may not help.
  
  
  

• You’re working inside an investor circle
  If your deal pipeline includes flippers and landlords actively buying, you might have a fast buyer without involving an agent at all.

These situations save money, but they also limit your reach. The real question is, what’s the upside of paying for that MLS access?

When a realtor makes sense

In most retail-targeted novations, using a realtor isn’t just smart, it’s necessary. Here’s why.

MLS access is non-negotiable

The MLS is the single biggest pool of retail buyers. Without it, your novation is stuck in investor land. Realtors are the gatekeepers.

Buyer confidence

Buyers are more comfortable when they see a licensed agent representing the seller. It feels official, especially when financing and appraisals get involved.

Smooth compliance

Realtors understand the paperwork, disclosures, and timing requirements that go along with novations. A compliant listing reduces the chance of surprises at the title company.

Higher proceeds

Yes, the commission cuts into the gross, but MLS-driven buyers tend to pay retail. Often, the net profit after commissions is still higher than that of an off-market sale.

The realtor’s role in a novation

When you decide to bring a realtor in, make sure the expectations are clear from day one. Their role is different from a traditional listing.

• They list the property on MLS under the seller’s name

• They field buyer inquiries and present offers to the seller

• They protect their commission in writing so there’s no confusion at closing

• They lean on you for contractor updates, repair timelines, and disclosures

Think of them as the public-facing partner while you do the behind-the-scenes work.

How to choose the right realtor

Not all agents are comfortable with novations. Some have never heard of them. Others see them as risky or complicated. You’ll save yourself a lot of friction by picking the right partner.

• Find an investor-friendly agent who already understands creative deals

• Check their MLS board rules so they know how novations are treated locally

• Make sure they communicate well because timing is critical once buyers start lining up

• Clarify their commission so you can build it into your net projections

The right realtor can make the novation smooth. The wrong one can sink it before it ever hits the MLS.

What to disclose

Transparency keeps everyone safe. When a realtor is involved in a novation, these disclosures matter:

• The seller remains the seller of record

• You’re stepping in with authorization to coordinate and cover repairs

• Net proceeds for the seller are locked in, regardless of the eventual buyer price

• Buyers will contract directly with the seller’s agent, with novation paperwork substituting you in

Each disclosure reduces the risk of later disputes, both with the seller and with the board.

Common mistakes to avoid

• Trying to sideline the realtor instead of working with them

• Letting repairs run long and frustrating the agent with missed showing opportunities

• Skipping disclosure about your role, which can backfire if buyers or brokers complain

• Expecting the agent to handle investor paperwork without your guidance

Remember, most realtors are trained for conventional listings, not novations. Keep them looped in and make it easy for them to succeed.

Tools that make realtor coordination easier

Managing novations often means juggling seller updates, agent expectations, buyer interest, and contractor timelines. It’s a lot to track.

Tools like Goliath Data keep the moving parts organized by automating follow-up with sellers, sending reminders for key tasks, and tracking deal status in one place. That way, the agent isn’t left waiting for answers, and your pipeline doesn’t stall because of missed communication.

The bottom line

Using a realtor in a novation deal isn’t always required, but it often pays off. If the goal is top-dollar retail exposure, you’ll almost always need them. If you already have a buyer or the property doesn’t fit MLS standards, you might save by going direct.

The key is clarity: know when a realtor adds value, choose the right one, and make disclosures upfront so no one feels blindsided. Do that, and the commission becomes an investment in a smoother, more profitable novation.

If you’re ready to stop guessing which sellers and agents to work with, Goliath can help you identify motivated leads and manage every step of the process without dropping the ball.

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