Pitching Novations to Sellers · The Cowboy Sales Process

This document is your field manual for pitching novation agreements. Forget the tired, lowball wholesale offers that get you shut down. In a market where sellers are skeptical and deals are tight, the novation is your tool to create bigger spreads, solve more seller problems, and close deals others can't.

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Module 1: Understanding the Battlefield - Novation vs. Wholesale vs. Realtor

Before you can pitch, you must understand your arsenal. A novation agreement is a hybrid strategy that cherry-picks the best parts of wholesaling and traditional real estate.

What is a Novation Agreement (in this context)? At its core, you get a property under contract with the seller. Instead of assigning that contract to a cash buyer (wholesaling), you partner with the seller to list the property on the open market (MLS) to find a retail or financed buyer. You handle the process, and in return, you get the profit between your agreed-upon price with the seller and the final sales price.

Key Distinctions: The seller must understand why you're different—and better—than the other calls they're getting.

Examples

Examples

Price to Seller

Lowest price ("50 cents on the dollar").

Highest potential price.

A strong middle-ground. Significantly higher than a wholesale offer.

Property Condition

As-is. No repairs needed.

Must be "market-ready." Requires repairs, updates, and cleaning to fetch top dollar.

Sold completely as-is. Based on "Current Condition Value" (CCV) without any seller investment.

Speed of Sale

Fastest. Quick cash closing.

Slowest. Can take months.

Slower than wholesale, but often faster than a traditional listing. An extra 15-30 days is a realistic expectation to set.

Hassle for Seller

Low. Sign and walk away.

High. Showings, repairs, uncertainty.

Low. You manage the listing and sale process. The seller does nothing to the property.

There are no rows in this table

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Module 2: The Pitch: Scripts & Psychology

This is where the rubber meets the road. Your approach must be strategic, confident, and clear.

3 Phases

3 Phases

Phase 1: The Initial Approach & The Wholesale Offer

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Phase 2: The Novation Pivot - The "Value" Option

Column 2

Phase 3: The Simplification Principle - Keep It Clean

Column 2

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Module 4: When to Deploy the Novation Strategy

This isn't for every seller or every market. Deploy it strategically.

Seller Motivation: The ideal seller wants a price close to retail value but lacks the funds, time, or desire to do repairs. They are often offended by lowball wholesale offers.

Property Condition: The property needs work. If it's already in pristine "turn-key" condition, the seller has no reason not to use a traditional agent to get the absolute maximum price.

Market Conditions: This strategy thrives in markets where fix-and-flippers are hesitant.

Rising Interest Rates: Flippers face higher borrowing and holding costs, making them cautious.

Market Uncertainty: When future property values are uncertain (like around an election), flippers pull back, but retail buyers are still active. A novation bridges this gap by finding a retail buyer willing to do the work for equity.

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Conclusion: Stop Negotiating, Start Solving

The novation pitch is a fundamental shift in strategy. It moves you from an adversarial negotiator trying to get the lowest price to a problem-solver who offers multiple solutions.

The Fast Cash Offer (Wholesale): For sellers who need speed above all else.

The High-Value Offer (Novation): For sellers who need the highest possible price without doing any work.

By presenting these two options, you control the conversation and position yourself as the only logical person for the seller to work with. You've now weaponized your knowledge to close more deals at higher profits. Get in the field and execute.

Novations work when you have the right leads—Prexium brings them straight to yo. Start today 👉

The Cowboy Marketer⁠

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