Most sellers think they have two options: take a discounted cash offer or go through the slow, uncertain process of listing with an agent. A novation agreement is a third path — one that most homeowners never hear about — that combines the simplicity of a direct sale with the potential for a significantly higher net price.
The Problem With the Standard Cash Offer Model
Standard cash buyers operate on a simple model: they offer you a discount on your home's value, renovate it, and keep the profit. That's not inherently wrong — they're taking on risk and doing real work — but it does mean you're leaving a significant amount of money on the table. For a detailed comparison of what that difference actually looks like in dollars, see: Cash Home Buyer vs. Realtor — The Real Comparison.
What a Novation Agreement Actually Is
A novation agreement, as defined under general contract law, is a legal arrangement that substitutes one party in a contract with another, or that replaces an existing obligation with a new one. In real estate, Investopedia describes novation as the replacement of one contract with another — in the context of home sales, this means we step in and manage the transaction on your behalf under an agreed-upon structure.
In practice: we take over the work of preparing, marketing, and selling your property on the open market. You stay out of the day-to-day entirely. When the home sells, we split the profit transparently after all agreed costs — our interests are fully aligned with yours.
Traditional Cash Offer
The Standard Model
- You take a discounted offer
- Buyer keeps all the upside
- No transparency on profit
- Closes fast but costs you equity
- Lowest net proceeds for seller
Bee's Knees Partner Program
Our Novation Model
- We manage the entire sale
- You share in the market upside
- Full Glass Box transparency
- We handle all the work
- Higher net proceeds for seller
How It Works — Step by Step
1
We Evaluate Your Property
We assess the home's current condition and what it could realistically sell for on the open market with the right preparation and marketing.
2
We Agree on Terms Together
We lay out exactly what we plan to do, what it will cost, and what you'll receive when the home sells. Every line item. No surprises. No fine print.
3
We Do the Work
We coordinate any necessary updates, handle marketing, show the home, and negotiate with buyers — all without disrupting your life or requiring your involvement.
4
Home Sells at Market Rate
The property sells on the open market to a qualified buyer — typically for significantly more than a direct cash offer would have produced.
5
Proceeds Split at Closing
After all agreed costs are settled, you receive your share and we receive ours. Everything is accounted for in black and white at the closing table.
We call it the Bee's Knees Partner Program because that's what it is — a real partnership. Not a transaction. Our goal is for you to walk away feeling like you got the best possible outcome.
Is Novation Right for Your Situation?
Novation works best when you need to move on from a property but don't want to take a deep discount to do it, when you don't have the time or energy to manage a traditional listing, when the home has real equity worth capturing that a straight cash offer would leave behind, and when you want complete transparency on what happens to your home and your money.
If your situation involves an inherited property, this model is particularly powerful. See: How to Sell an Inherited Property Without the Headache.
If you need to move fast due to foreclosure and can't wait for an open-market sale, a direct cash close may be the better path. See: Facing Foreclosure — Your Real Options.
The Glass Box Philosophy
At Local Home Buyers USA we operate on what we call Glass Box transparency. You see everything — every cost, every decision, every dollar. The CFPB's closing process guidelines outline what sellers are entitled to see at closing — we go further than that baseline by design. If we're going to be your partner on the most important financial transaction of your life, you deserve to see exactly how it works.
Find Out Which Option Is Right for You
Cash offer. Novation partnership. We'll walk you through both honestly and tell you which makes the most sense for your situation — no cost, no obligation.
Call 1-800-858-0588
