Novation (list it with an agent)
Instead of selling to a cash buyer, you and the seller sign a novation agreement and list the house on the MLS with a novation-friendly agent. A retail buyer pays more; you get the difference agreed in the novation at closing.
Why it fits Long Island City
- Ranks well on this month's Long Island City numbers.
How it works
Step by step
- Put the house under contract, then sign a novation agreement (attorney-reviewed) that replaces it and sets your share.
- Do light repairs and cleaning to get top retail price, if the agreement allows.
- List with an agent who knows novations (see the agents on this page) and accept offers with the seller.
- Close through a title company or attorney that understands novations; your share is paid at closing.
What you need
- An attorney-reviewed novation agreement
- A novation-friendly agent and broker
- Time: usually weeks to a couple of months on market
Costs
Agent commission and repairs come out of the spread; it usually still beats a cash-buyer price in hot retail markets.
Watch out for
- Some states see marketing someone else's house as brokering without a license; check the state rules.
- The seller must understand and agree in writing; be transparent about your role.
- A slow market means the seller waits longer, so check days on market first.
