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a Novation agreement allows me to pay more money for that sellers property because Im actually not buying the house Im committing to give the seller a number after I renovate it and sell the property now you might be asking how in the hell are you going to renovate a house and sell that house if you were never the owner lets imagine that I have a friend or a neighbor that has a car thats just beaten down and sitting in the driveway could I not just fix up that car and clean it up go sell it for my neighbor and say Ill give you a thousand dollars and I keep everything above that well thats a Novation agreement I didnt have to buy the car until I cleaned it up sold it to my buyer lets say for two thousand dollars I get two thousand dollars and I pay off my neighbor for his piece of one thousand dollar car