Retail Partnership Option

What the Retail Partnership Option is

Some houses are in decent condition and in good neighborhoods. A cash buyer must pay much less than retail price because of repairs, costs and risk. But that same house, lightly updated and sold to a regular home buyer on the open market, can sell for much more.

With the Retail Partnership Option:

1. The seller and (COMPANY NAME) sign an agreement. It sets a guaranteed net amount the seller receives at closing (before their own mortgage, liens and taxes are paid off).
2. Our team pays for agreed repairs and updates, and markets the house for sale on the open market with a licensed real estate agent.
3. A retail buyer (usually with a mortgage) signs a contract to buy the house.
4. At closing, the seller receives the agreed net amount. Our team keeps what is left after paying the repair costs, agent commissions and closing costs. That difference is how we are paid.
5. If it does not sell by the agreed end date, the agreement says what happens. Usually it ends, or both sides agree to change the terms.

Before you dial

• Your client or acquisitions manager approved this option for this property, with three numbers: the seller's net amount, the expected retail sale price, and the repair budget. The approver is reachable live during the call for the hold in stage 1.
• You know the expected timeline (for example, 90 days), and the end date and what happens if it doesn't sell.
• The licensed agent or broker who will list the house is confirmed.
• The documents are ready in the e-signature tool but not sent: usually the purchase agreement, the retail partnership agreement (it may be called a novation agreement in the documents), and any listing or disclosure forms the state requires.
• You have read the agreements yourself and can explain every section in plain words.
• Calling window checked. Every decision maker on the call.

The example numbers

Item	Example
Cash offer (declined)	130,000 USD
Seller's asking price	200,000 USD
Expected retail sale price after light updates	240,000 USD
Repairs and updates, paid by our team	15,000 USD
Agent commissions and closing costs on the retail sale	about 20,000 USD
Seller's guaranteed net amount	190,000 USD
What our team keeps if it sells at 240,000 USD	about 15,000 USD

These are training numbers. Real numbers always come from your client.

The flow

1. The pivot

Use this the moment the last cash offer doesn't work.

You: I know that isn't the news you were hoping for, (SELLER FIRST NAME). (LAST CASH OFFER) is as high as they'll let me go in cash, as-is. But I have an idea.

You: We have an exclusive option called the Retail Partnership Option. Very few properties qualify, usually because of condition or location. From what you've told me, you've taken really good care of this house, and it's in a good location.

You: If getting (SELLER'S PRICE) is more important to you than a quick cash sale, this could be perfect for you. It usually needs a longer close than (CASH DAYS) days, but they can usually come up quite a bit on price.

You: Give me two more minutes to see if I can get it approved, and what the number would be. I'll be right back.

Hold (about 3 minutes): run the Retail Partnership numbers with the approver: seller net amount, expected retail price, repair budget, timeline.

You: Congratulations again, (SELLER FIRST NAME). I had to push hard on this one, but I got your property approved for our Retail Partnership Option. They only approve about 1 in 20 homes for this option, so I'm excited for you.

You: They're asking for a (TIMELINE IN DAYS) day close, and they came all the way up to (SELLER NET AMOUNT).

Why it works: The seller has just heard "no" on cash. The pivot gives them a new door, the hold makes it feel earned, and the approval turns a lost deal into good news.

If they say "Speed matters most"

You: Then the cash offer is the better fit for you. Let me see if there's anything more they can do on cash.

Go back to The Offer Call, stage 9, or set a follow-up.

If they say "I'll just list it myself with an agent"

You: That's an option. The difference with ours is that you don't pay for repairs, commissions or closing costs, and you know your amount up front. You don't deal with showings, negotiations or marketing. We do it all.

If they ask "How many houses qualify?"

You: Very few. They only approve about 1 in 20 homes for it. It works for homes in good condition in neighborhoods where regular buyers want to live, and yours qualified.

2. Assume the close: explain the option

You: Let me explain the option in detail so we're all on the same page.

You: We partner with a local licensed agent in your area. They have buyers looking for homes in your exact neighborhood. We pair one of those buyers with your property.

You: We cover the commissions, the closing costs, and any repairs or updates the property needs to close. And we all go to the closing table together to make sure it's a smooth sale.

You: Now, because this is a retail buyer, I need a couple of things from you. The (TIMELINE IN DAYS) day close we talked about. And a little access to the property for things like inspections, the appraisal and walkthroughs.

Why it works: You talk as if the seller has already said yes. The two "asks" (time and access) are small next to the higher number, so they are easy to agree to.

3. Explain the idea in plain words

Use this when the seller asks "Why is this number so much higher than cash?"

You: A cash investor has to pay less, because they take on repairs, costs and risk. But your house is in good shape and in a good area. A regular family buying a home might pay a lot more for it, once it's lightly updated.

You: So here's the idea. Instead of us buying it for cash, our team pays for the updates, and a licensed agent we work with sells it on the open market to a regular buyer.

You: You'd get a set amount at closing, agreed in writing up front. We'd keep whatever is left after the repairs, commissions and closing costs. That's how we're paid.

Why it works: The seller can see why the number is higher than cash, and that our team is paid from the retail sale, not from them.

If they ask "Why don't I just do that myself?"

You: You could. You'd need to pay for the repairs up front, manage the contractors, pay the agent's commission and the closing costs. Some people want that. Others want one team to handle everything and a set number in writing.

If they ask "Is this a listing? Are you my agent?"

You: No. (COMPANY NAME) is not your agent. We're a buyer with a contract to buy your house, and our agreement lets us bring in a retail buyer. The licensed agent we work with will list the house. You can have your own attorney or agent review everything.

Use your client's exact approved wording for this answer.

4. Present the numbers

You: Here's what it would look like for your house.

You: We expect a fixed-up version of your house could sell for around (EXPECTED RETAIL PRICE). We'd pay about (REPAIR BUDGET) for updates, like (LIST OF UPDATES).

You: You'd receive (SELLER NET AMOUNT) at closing. That's compared to (CASH OFFER) on the cash offer. Your mortgage and anything else owed is paid from your amount, as usual.

You: You pay no commissions and no closing costs on the sale. Those come out of our side.

Then stop and let them think.

Why it works: Comparing the two options side by side lets the seller choose with clear eyes.

If they ask "So you make 50,000 off my house?"

Walk them through the math:

You: No. If it sells for (EXPECTED RETAIL PRICE), about (COMMISSIONS AND COSTS) goes to agent commissions and closing costs, and (REPAIR BUDGET) to repairs. We'd keep about (EXPECTED TEAM AMOUNT). If it sells for less, we keep less, and your amount doesn't change. If the repairs cost more, that's on us too.

If they say "Can I get more than that?"

You: Where do you need to be to walk away happy? Is that the best you can do, so I can let our underwriter, (APPROVER FIRST NAME), know? And if they can come up to that, are you ready to move forward now?

Hold, and come back with a small step up inside the approved range, the same way as The Offer Call, stage 9.

If they ask "Why not just give me a higher cash offer?"

You: Because with cash, we carry all the risk and costs before a retail buyer is even found. Here, a retail buyer pays the higher price, so you get more.

5. Explain how it works, step by step

You: Let me walk you through the steps, so there are no surprises.

You: One. We sign the agreements. That locks in your amount and the end date.

You: Two. Our team does the agreed updates. You'd need to give access for contractors, usually over (REPAIR WEEKS) weeks.

You: Three. The licensed agent takes photos and lists the house for sale. You'll see the listing online, at a higher price than your amount. That's expected. It's the retail price the buyer pays.

You: Four. Buyers come to see it. We'd agree on showing times that work for you.

You: Five. When a buyer signs a contract, they'll do an inspection and their lender does an appraisal. Our team handles any repairs the buyer asks for.

You: Six. Closing at the title company. You get your amount, and the buyer gets the house.

Why it works: Each step names what the seller has to do and what they will see. Seeing the listing price was explained in advance, so it builds trust instead of breaking it.

If they say "I don't want strangers in my house"

You: That's understandable. Showings are needed to sell to a regular buyer. We'd schedule them in advance with you. If that's a deal breaker, the cash offer may be the better choice, and that's okay.

If they say "I'm still living there"

You: That's fine. We'd plan the updates around you, and agree on showing times. Some updates may be easier after you move out. Let's talk about your moving plans.

If they ask "What if the buyer's inspection finds problems?"

You: Our team handles the repairs the buyer asks for. Your amount stays the same. That's written in the agreement.

6. The trade-offs

You: Let me also cover the trade-offs, so we're on the same page.

You: It takes longer, usually (TIMELINE IN DAYS) days, sometimes more. Until closing, you still own the house, so you keep paying the mortgage, taxes, insurance and utilities.

You: A retail buyer usually has a bank loan. Sometimes loans fall through, and we have to find another buyer.

You: If it doesn't sell by (END DATE), the agreement says (WHAT HAPPENS IF IT DOES NOT SELL, FROM THE AGREEMENT).

You: Does all of that make sense? What questions do you have?

Why it works: A seller who heard the trade-offs up front stays calm when a buyer's loan falls through, and the deal survives.

If they say "What if it never sells?"

You: Then, by (END DATE), the agreement (WHAT HAPPENS IF IT DOES NOT SELL, FROM THE AGREEMENT). You wouldn't owe us for the repairs we paid for, unless the agreement says otherwise.

Read the exact clause before the call. Never guess.

If they ask "Can I back out?"

Answer from the agreement and the state's rules. If the state gives a cancellation period, say so clearly:

You: In your state, you have (CANCELLATION PERIOD) to cancel after signing. After that, the agreement explains the rules. Let me show you that section when we go through it.

If they say "I can't afford to keep paying the mortgage for months"

You: Thank you for telling me. Then this option may be too hard on you. The cash offer closes faster. Let's look at that again, or see if anything else would help.

Never push this option on someone who cannot carry the house.

7. Ask for a decision

You: So you have two options. The cash offer at (CASH OFFER), closing in about (CASH DAYS) days, simple and certain. Or the Retail Partnership Option at (SELLER NET AMOUNT), taking about (TIMELINE IN DAYS) days, with the steps and risks we talked about.

You: Which one feels right for you?

Why it works: A clear side-by-side choice respects the seller. Either answer is a good outcome if they understand it.

If they choose the Retail Partnership Option

You: Great. I'll send the agreements now, and we'll go through every section together.

Go to stage 8.

If they choose the cash offer

You: That's a great choice if speed and simplicity matter most. Let's go through the purchase agreement.

Use the Contract Walkthrough Call script.

If they want time to think or to ask someone

You: Of course. I'll email you a summary of both options so you can compare. When can we talk again? Tomorrow at (TIME)?

Send the Offer Summary Email with both options. Book the call back.

8. Walk through what they sign

You: Go ahead and pull up your email. Our underwriter is sending the agreements to your email now. Do you see them yet?

Have the seller open their inbox first. When they say they don't see it, click send, so it lands while they are looking. Then:

You: You'll see (NUMBER) documents. Let's open them together.

Explain each key section in plain words. The exact names vary by client and state. Typical sections of the retail partnership agreement:

Section	Plain-language explanation
The parties and the property	"This confirms who you are, who we are, and the house."
How the agreements connect	"When a retail buyer signs a contract, that contract takes over our responsibilities as the buyer. You sell directly to the retail buyer."
Repairs	"Our team pays for the agreed updates and any repairs the buyer's inspection asks for. You don't pay for repairs."
Your net amount	"At closing you keep (SELLER NET AMOUNT), minus any taxes, mortgages or liens on the property, which are paid off from it."
Access	"You agree to give access for repairs, photos, showings, inspection and appraisal, at agreed times."
Protection for both sides	"This protects each of us from any problems or harm that could come up through the agreement. For example, if a contractor we hire damages something, that's on us."
Failure to close	"This explains what could happen if any party fails to close, including if it doesn't close by (END DATE)."
Cancellation rights	"If your state gives you a right to cancel, it's explained here."

You: Any part you'd like me to explain again? You're also welcome to have an attorney review it before you sign.

When everything is clear, guide them through the e-signature steps (see the Contract Walkthrough Call script, stage 4), then set expectations the same way as The Offer Call, stage 10: the transaction coordinator within 24 hours, photos, access for contractors and the agent.

If they want their attorney to review first

You: That's a smart choice. Take the time you need. When do you think they can look at it? I'll call you on (DAY) to answer any questions.

If they find a section they don't like

You: Thanks for pointing that out. Let me put you on a quick hold and see what our underwriter, (APPROVER FIRST NAME), can do on that.

If they ask "Who do I call during the process?"

You: Our transaction coordinator, (TC NAME), will call you within one business day and update you every week until closing. You can always reach me at (OFFICE NUMBER) too.

Objections

For full handling, see the Objection Handbook in the Script Library.

If you hear	Short answer
"This sounds too good to be true."	"It's not magic. You trade time for a higher amount. Very few homes qualify, and yours did."
"Why do you get to keep the difference?"	"We pay for the repairs and carry the risk if it sells for less. The difference is our payment for that."
"I'll just do it myself."	"You can. Compare what you'd net after repairs, commissions, closing costs and months of payments."
"I don't want to wait three months."	"Then the cash offer is probably the better fit for you, and that's okay."

After the call

Code	Use when	CRM stage
RPO	Option presented, decision pending	Offer Made
UC	Agreements signed	Under Contract (opens the TC workflow, flagged as Retail Partnership)
NEG	Negotiating the net amount or terms	Negotiating
FU-WARM	Seller wants time; follow-up booked	Warm Follow-up
NI	Declined both options	Dead (reason)

Next step: For UC, hand off to the transaction coordinator and the listing agent the same day, with the agreements, the repair scope and the seller's access preferences.

Check yourself

1. In one sentence, how is our team paid in the Retail Partnership Option?
2. What must you tell the seller about the listing price before they sign?
3. What are the four parts of the pivot, from "I have an idea" to "they came all the way up"?
4. A seller says they cannot afford three more months of mortgage payments. What do you do?
5. Why do you check the state's Market Compliance Card before presenting this option?

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