Every figure recalculates as you type: nothing to save, nothing to submit.
Novation Underwriting
Know the number before you make the offer.
Enter the comps, the condition, and your costs. This ledger runs the same math as your underwriting sheet: retail value, repair estimate, maximum seller net, and expected profit, then stamps the deal the moment it has enough to decide.
How it reads: Fill Sections 1A to 1C on the left. Section 2 recalculates live. The stamp on the right tells you to Proceed, Renegotiate, or Walk Away, following the same logic as the "3. Deal Outcome" line on your spreadsheet.
A
Property, Address & Comps
inputs
Comparable Sales3 required
1Comp 1
2Comp 2
3Comp 3
Retail value defaults to the average of all 3 comps. Enter a manual override only to replace that average.
B
Property Condition
inputs
Rate all 5 systems 1 to 3 (Good / Fair / Poor). The total score sets Light (5 to 7), Average (8 to 11), or Heavy (12 to 15) rehab, using a $20 / $35 / $55 per-sf rate.
C
Novation Assumptions
inputs
Seller Agreed Net is the only required figure below. Everything else has a sensible starting default you can adjust.
Enter Inputs
Fill in the comps, condition, and seller net to get a decision.
2A · Value & Rehab
Average of 3 compsn/a
Final retail value usedn/a
Condition scoren/a
Auto rehab leveln/a
Rehab rate used ($/sf)n/a
Repair estimate usedn/a
2B · Novation Economics
Selling / agent costsn/a
Closing / title costsn/a
Repair cost in spreadn/a
Holding + marketingn/a
Buyer credit / concessionsn/a
Total novation costsn/a
Maximum seller netn/a
Expected end buyer pricen/a
Expected novation profitn/a
Expected profit marginn/a
Renegotiate seller byn/a
2C · Deal Checks
Comps readyn/a
Condition readyn/a
Seller net checkn/a
Profit checkn/a
Economics checkn/a
Maximum Seller Net = Final Retail Value − Total Novation Costs − Target Profit Expected Profit = End Buyer Price − Seller Agreed Net − Total Novation Costs Decision = Proceed when target profit is met and seller net is at/below the maximum; otherwise Renegotiate or Walk Away.
Comp Selection
Comps decide the number. Get them right first.
Every downstream figure in the analyzer (retail value, repair budget, maximum seller net) starts from your three comps. Weak comps produce a confident, wrong answer. Here's the disciplined way to pick them.
Rule of thumb: If you have to explain away more than one difference between the subject and a comp, it isn't a comp. Keep looking.
1
What Makes a Comp Valid
the five filters
Proximity
Within about a half mile in dense areas, up to 1 mile in rural ones. Same neighborhood, same school zone, same side of any major road or rail line that splits values.
Recency
Sold within the last 90 days. Stretch to 6 months only if the market is slow and you note the gap. Never use anything over a year without a strong written adjustment.
Size & Type
Within roughly 10 to 15% of the subject's square footage, same property type (single-family to single-family, not to a duplex), and a similar bed/bath count.
Condition Match
Match the comp's condition to the subject's after-repair condition: a renovated comp values a renovated subject, not the distressed one sitting in front of you today.
Sale Type
Prefer arm's-length retail sales. Flag or exclude foreclosures, short sales, auctions, and family transfers. They distort price and belong in a separate note, not the average.
2
Where to Pull Them From
sources, ranked by reliability
Best
MLS via a licensed agent: verified closed sale prices, full property detail, and off-market/pocket comps public sites never show.
Best
County recorder / assessor site: official recorded sale price and date, straight from the deed. Slower to update but never estimated.
Good
Zillow, Redfin, Realtor.com: fast and filterable for a first pass. Cross-check the price against the county record before you trust it.
Good
Title company or appraiser: ask for a quick comp pull on deals worth it. They carry data feeds most investors don't have access to.
Use with care
Automated valuation models (Zestimate and similar): treat as a sanity check only, never as a comp on their own.
3
Adjusting a Comp
when it's close but not identical
A comp that's slightly off isn't disqualified. It's adjusted. Move the comp's price toward the subject, not the other way around.
Comp is biggerSubtract value for the extra square footage
Comp is smallerAdd value for the missing square footage
Comp has a garage, subject doesn'tSubtract a local garage premium
Comp sold updated, subject is notSubtract the cost to bring the subject to match
Comp sold 4+ months agoAdjust for local appreciation or decline since sale
Keep any single adjustment under roughly 10% of the comp's price. Stacking several small adjustments on one comp is a sign it doesn't belong in the set. Find a cleaner comp instead.
4
Red Flags to Exclude
drop these before they skew your average
✕ Distressed sales: foreclosure, REO, short sale, or auction pricing
✕ Sales between relatives, business partners, or the same LLC family
✕ New construction comped against an older subject, or vice versa
✕ A price that sits noticeably above or below the other candidates with no clear reason
✕ Anything across a boundary that changes value: school district, flood zone, HOA, or a busy road
Working order: pull 5 to 8 candidates within the filters above → drop anything that trips a red flag → adjust the survivors for real differences → keep the 3 closest matches → average them into Final Retail Value on the Deal Analyzer.
Contract Generation
From decision to signature-ready.
Fill in the parties and terms below and this generates a complete Purchase and Sale Agreement, plus the Authorization to Sign Listing Documents, as a downloadable PDF built from your firm's standard template.
Purchase price: pulled automatically from Seller Agreed Net on the Deal Analyzer tab. Signature and date lines are left blank for wet or electronic signature after download.
1
Parties & Terms
inputs
Purchase Price defaults to Seller Agreed Net from the Deal Analyzer tab. Enter an override only to use a different figure on the contract.
2
Buyer Entity & Signing Authority
inputs
This is the buyer entity and signer shown on both the Purchase Agreement and the listing authorization. Update it if you're generating a contract for a different buyer entity.
3
Addendum
optional
Leave blank to omit. Anything entered here is added to the contract as "11. Addendum," directly after General Terms and before the signature block.
Contract Summary
Property addressn/a
Seller(s)n/a
Effective daten/a
Purchase pricen/a
Closing periodn/a
Buyer entityn/a
Ready to Generate
Property address setn/a
Seller 1 name setn/a
Purchase price setn/a
The generated PDF includes the full Purchase and Sale Agreement (Sections 1 through 10) and the Authorization to Sign Listing Documents, with signature and date lines left blank for the parties to sign after download.