Novation / Structured Retail Sale
We fund and coordinate value-add aesthetic renovations to achieve peak retail price on the MLS, while guaranteeing your target net equity.
How This Selling Option Works
A Novation is a legal agreement where Terms Real Estate funds and oversees all cosmetic and functional repairs to bring your home to top retail standard. We market the updated home to retail buyers on the MLS, while guaranteeing you an agreed net price at closing. When the retail buyer purchases, a novated agreement substitutes the end buyer, and you walk away with your target equity.
Equity Spread & Scope Analysis
We inspect the home, develop an itemized renovation scope, and lock in your agreed guaranteed net proceeds.
Capital-Funded Renovation
Our contractor team funds and executes modern updates (kitchen, bath, flooring, paint) with $0 out-of-pocket from you.
Retail MLS Sale & Guaranteed Payoff
The home is sold to an end consumer at top market value; you receive your guaranteed proceeds at title closing.
When It May Fit
- The home is structurally sound but outdated, requiring cosmetic work to qualify for top-dollar buyer loans.
- You do not have $20,000–$50,000 in cash to fund renovations yourself.
- You want retail price rather than a discounted cash wholesale offer.
- You want experienced project management without dealing with contractor headaches.
Major Considerations
- Requires sufficient equity spread between current as-is value and after-repair value (ARV).
- A formal Novation Agreement and listing representation documents are executed through title escrow.
- The seller's net equity is protected and prioritized at closing.
What Terms Real Estate Needs
To structure this transaction accurately and produce net numbers, our acquisitions desk requires basic property facts:
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Compare Other Selling Options
Not Sure — Compare My Options
Unsure which path fits best? We analyze your equity, timeline, and property condition side-by-side to identify your highest net return.
Traditional MLS Listing
List on the open market through licensed real estate agents when you have time, standard retail condition, and want maximum public exposure.
Direct Cash / As-Is Sale
A guaranteed direct cash purchase with private capital. No bank loan approvals, no appraisals, zero cleanout work, and closing in days.
Subject-To
We purchase your property subject to the existing financing, taking over monthly mortgage payments via an independent third-party loan servicer.
Seller Financing
You act as the bank, receiving monthly principal and interest installment payments secured by a recorded mortgage or deed of trust.
Lease-Option
Lease the property to a vetted buyer with an agreed-upon purchase option, collecting steady monthly premium rent while locking in future sales proceeds.