Statewide: all 67 Alabama counties
Alabama wholesale novations, closed by a licensed agent.
Can't find a cash buyer at your price? Hannah McCandless of Anderson Realty Company lists the property on the MLS under a novation agreement, sells it at retail, and your fee is paid at closing. Send the deal online and track it every step.
Is your deal a fit?
Novation works best when retail buyers are your real exit.
Assignment is still the right move for plenty of deals. Here is how to tell the difference before you spend time on the wrong one.
Good novation candidates
- The home is in sellable condition, or needs light work a retail buyer will accept.
- Retail value is far enough above your contract price to cover commission and costs and still leave you a fee.
- Your seller is willing to list with a licensed agent and sign the novation agreement.
- Your contract gives enough time, or can be extended, to run a normal listing.
- Title is clean enough to close on a standard sale.
Usually better as an assignment
- Heavy rehab or condition problems that only cash investors will buy.
- Your contract price is already close to market value.
- You need to close in a couple of weeks.
- The seller won't list the home or won't agree to the fee arrangement.
- Title or ownership questions are still unresolved.
How a novation works
How an Alabama novation works: you stay in the deal.
A novation replaces or restructures part of an existing contract, such as who is involved or what each party agrees to, with every party's written consent.
In wholesaling, that usually means a written agreement between the seller, you, and a listing brokerage. The seller keeps the price you agreed on, the brokerage sells the home to a retail buyer, and your fee is paid from what the home sells for above that price.
- 1
Send the deal
Send your signed contract, the address, photos, your repair estimate and the seller's situation. Hannah reads the contract before anything else.
- 2
Agree on price and fee
Hannah pulls comparable sales and gives you a list price opinion. You, the seller and Anderson Realty settle the list price, your fee and the timeline.
- 3
Sign everything in writing
The seller, you and the brokerage sign the novation agreement and a listing agreement. Your fee is written into the paperwork and disclosed to the seller.
- 4
List and sell
Photos, MLS exposure, showings, offers, inspections, repair requests and the appraisal are all handled by your agent, while you stay informed.
- 5
Close and get paid
The title company disburses at closing. The seller receives the agreed price, the commission is paid under the listing agreement, and your fee is paid as written.
Details vary by contract. Have your own Alabama real estate attorney review the paperwork. Anderson Realty is not your lawyer and this page is not legal advice.
Why an experienced agent
Why an experienced real estate agent matters on a novation.
The spread only exists if the home actually sells at the right price and closes on schedule. That is the agent's job.
Pricing that holds up
List too high and the home sits. List too low and your spread disappears. Local comps and recent sales set a number buyers and appraisers accept.
A wider buyer pool
The MLS puts the home in front of retail buyers using financing, agents' clients and investors, not just the cash buyers on your list.
Negotiation that protects the deal
Offers, counteroffers, inspection requests and appraisal gaps are where deals fall apart. An experienced agent keeps them from killing the contract.
Paperwork done right
Listing agreement, disclosures and contract addenda are handled by a licensed professional, so your attorney reviews a clean file.
A seller who stays on board
As listing agent, Hannah's duties run to the seller. Clear communication and a fee that is disclosed up front keep the seller comfortable through closing.
Deadlines under control
Hannah tracks inspection periods, loan milestones and title work, and tells you early when the schedule or the numbers need to change.
Run your numbers
Novation or assignment: see which pays more on paper.
Change the figures to match your deal. The numbers are an estimate, not a quote, and actual costs and commission are set in the signed agreements.
On paper only. A novation follows a normal listing timeline, so it usually takes longer than an assignment, and your fee is paid at closing. Open the full calculator.
| Assignment | Novation with an agent | |
|---|---|---|
| Who buys | A cash investor, usually from your buyers list. | A retail buyer from the MLS, or an investor who finds it there. |
| Your fee | The gap between your contract price and what the investor pays you. | What the home sells for above the seller's price, minus commission and costs. |
| Speed | Often the faster route. | Follows a listing timeline, so plan for longer. |
| Seller's role | Mostly hands off. | Signs a listing agreement and novation agreement, and keeps the home showable. |
| Who markets | You do. | A licensed agent does. |
| Best for | Distressed homes and quick investor exits. | Homes retail buyers will buy, where the full market price leaves room for a fee. |
Questions wholesalers ask
Straight answers before you send a deal.
Is a novation allowed in Alabama?
Novation is an established contract concept: the parties agree in writing to replace or change the terms or parties of an agreement. How it fits your wholesale contract depends on that contract's wording, so have an Alabama real estate attorney review it. Anderson Realty is not your lawyer.
Does the seller see my fee?
Yes. The fee is written into the agreement the seller signs. Hannah represents the seller as listing agent, and a hidden fee would put every party at risk.
Who pays the commission?
The listing agreement sets it and it is paid at closing from the sale proceeds. Because the seller's price is fixed, commission comes out of the amount above that price, which is your spread. The calculator above shows the effect.
What if the property doesn't sell?
The listing period, price reductions and what happens when the term ends are agreed before anyone signs. If the numbers can't work, Hannah will say so before you commit.
My contract has no assignment clause. Can I still use a novation?
Possibly. A novation is a different route from assignment, but the seller still has to agree and your contract's terms still matter. Send the contract and Hannah will review it with you, then you take it to your attorney.
What should I send first?
Your signed contract, the property address, photos, your repair estimate, the closing date, and a short note on the seller's situation. The form below builds that message for you.
Your novation specialist
Hannah McCandless
Co-Owner & REALTOR® · Anderson Realty Company
Hannah has been a full-time REALTOR® since 2015 and co-owns Anderson Realty Company, serving buyers, sellers and investors across Alabama. Her focus is honesty, education and putting your goals first.
Her Anderson Realty profile ranks her in the top 1.5% of REALTORS® nationwide.
Her own investing includes BRRRR projects, fix-and-flips, DSCR financing, subject-to deals, seller financing and novations. She also mentors other agents, so she knows what a wholesaler's deal needs to close.
hannahmccandless.andersonrealty.co
Her approach is simple: read the contract, price the home against real comps, put the fee in writing, and keep the seller and the closing on track.
Go deeper
Send a deal
Submit your deal and track it to closing.
Properties in any of Alabama's 67 counties. You get a deal number and a private link to follow every status change. No account needed.
What happens next
- You land on your private tracking page and get the link by email.
- Hannah reads the contract and pulls comps, then updates the status: Received, Reviewing, Terms offered, Listed, Under contract, Closed.
- Every change is emailed to you, and you can message Hannah or add files from the same page.
Already submitted? Track a deal
Prefer to talk first? Call Hannah at 205-461-8096 or email hannah@andersonrealty.co.