Own your dream home, even if it under-appraises

A low appraisal can be a deal-breaker when buying a home. Not anymore. We'll cover the appraisal gap, so you can have a more secure closing and get the home you love.

What is Appraisal Protection?

We understand it's more difficult than ever to make a house a home in today's market, marked by low inventory and an abundance of competition. With Ribbon’s Appraisal Protection, Ribbon provides the cash you need upfront in the event that the home you'd like to buy under-appraises.

What is a home appraisal?

What is a home appraisal?
Loan officers use appraisals to determine how much to loan you for a home. A home appraisal is an estimate of the home's value conducted by a licensed or certified professional, often through a bank.

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To learn more about Appraisal Protection, select the state where you are looking to buy a home.

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Two flexible choices

You can choose between two payment options for Appraisal Protection when you write your RibbonCash offer.

The benefits of Appraisal Protection Pay Later

Ribbon provides homebuyers with a loan alternative to cover appraisal gaps without taking on debt.

We'll take care of the appraisal gap

Mortgage lenders use the appraised value of a home to calculate how large of a loan they're willing to approve. If the home appraisal comes back too low, you may end up with a gap you need to cover. We can help.

We won't penalize you for a lower appraisal

If the appraisal comes in lower than the purchase price, mortgage lenders usually decrease the amount you can borrow. Either you pay the difference or the deal can fall through. We ensure you still win.

You won't have to pay us back out of pocket

If you sell or refinance within 30 years, Ribbon will get paid the Appraisal Protection Amount and Service Fee from the sale proceeds—not from you.

If your home depreciates, you pay just a nominal fee

If you sell or refinance within 30 years and your home depreciated at the time of sale or refinance, you won’t have to pay for the Appraisal Protection Amount. Instead, we’ll only ask for a nominal fee (under $100).

You won't have to pay us back out of pocket

If you sell or refinance within 30 years, Ribbon will get paid the Appraisal Protection Amount and Service Fee from the sale proceeds—not from you.

How Appraisal Protection works

Ribbon provides homebuyers with a loan alternative to cover appraisal gaps without taking on debt.

Buyer opts into Appraisal Protection while writing their RibbonCash offer
Buyer must choose between:
Pay Now
Pay Later
Ribbon offer accepted
Buyer submits Ribbon deposits.
Home receives an appraisal
Ribbon prepares to bring cash to close if a gap is created.
If the buyer opted into Pay Now
Appraisal gap
Ribbon covers the full appraisal gap and retains the non-refundable fee.
No appraisal gap
That's great! No appraisal gap coverage is needed. Ribbon retains the non-refundable fee for preparing to front the cash at closing.
If the buyer opted into Pay Later
Appraisal gap
If the buyer would like to pay the appraisal gap themselves, they can bring cash to cover it at closing.
No appraisal gap
That's great! No appraisal gap coverage is needed.
If the buyer can’t cover the appraisal gap
Ribbon and the buyer sign the options contract. Ribbon then covers the full appraisal gap.
Sell / refinance / pay Ribbon early
The buyer can wait until they sell or refinancing to provide payment to Ribbon, or pay early. The options contract is then nullified.

Loan? No. Lien? No. Debt? No.

How is Appraisal Protection Pay Later different from a loan?

Ribbon does not provide you with a loan for Appraisal Protection, so there is no personal liability nor any obligation to pay Ribbon on you if the home refinance or sale proceeds isn’t enough to pay off Ribbon.

Will using Appraisal Protection Pay Later place a lien on my property?

No, a lien will not be placed on your home. Together we sign a contract that outlines our relationship and timeline. We make our money from the sale or refinance of your home—not from you. If you do not sell or refinance over a 30 year period then the contract automatically expires.

How come Appraisal Protection Pay Later doesn’t cause debt?

Ribbon does not provide you with a loan for Appraisal Protection, so there is no personal liability nor any obligation to pay Ribbon on you if the home refinance or sale proceeds isn’t enough to pay off Ribbon.

Appraisal Protection Pay Now in three easy steps

1

Opt-in for Appraisal Protection Pay Now while writing your offer

When you sign Ribbon’s Appraisal Protection Pay Now contract, Ribbon commits to bringing the cash to cover an appraisal difference up to our Ribbon Max Value.

What is a Ribbon Max Value?

Ribbon Max Value
This is the maximum purchase price Ribbon is willing to offer for a particular listing. You can arrange an offer that is higher than the Ribbon Max Value, but you will have to cover the difference.

2

If your offer is accepted, you’ll submit any buyer deposits

If the seller accepts your RibbonCash offer, the Ribbon Fee and Appraisal Protection Pay Now fee are included in your deposits.

What is a buyer deposit?

What is a buyer deposit
This deposit is known as “earnest money”. If you live in North Carolina, the Due Diligence Fee is also considered a buyer deposit.

3

Ribbon covers your appraisal gap

If your home appraises for less than the offer price, Ribbon will bring the cash to closing to ensure your deal closes on time.

Note: Similar to traditional insurance, the fee for Appraisal Protection Pay Now is non-refundable.

How Appraisal Protection works

Ribbon provides homebuyers with a loan alternative to cover appraisal gaps without taking on debt.

Buyer opts into Appraisal Protection while writing their RibbonCash offer
Buyer must choose between:
Pay Now
Pay Later
Ribbon offer accepted
Buyer submits Ribbon deposits.
Home receives an appraisal
Ribbon prepares to bring cash to close if a gap is created.
If the buyer opted into Pay Now
Appraisal gap
Ribbon covers the full appraisal gap and retains the non-refundable fee.
No appraisal gap
That's great! No appraisal gap coverage is needed. Ribbon retains the non-refundable fee for preparing to front the cash at closing.
If the buyer opted into Pay Later
Appraisal gap
If the buyer would like to pay the appraisal gap themselves, they can bring cash to cover it at closing.
No appraisal gap
That's great! No appraisal gap coverage is needed.
If the buyer can’t cover the appraisal gap
Ribbon and the buyer sign the options contract. Ribbon then covers the full appraisal gap.
Sell / refinance / pay Ribbon early
The buyer can wait until they sell or refinancing to provide payment to Ribbon, or pay early. The options contract is then nullified.

How? When? What?

Am I responsible for covering the appraisal protection gap?

No, once you’ve opted into Appraisal Protection Pay Now and paid the fee, Ribbon will cover any appraisal gap up to the Ribbon Max Value.

Is there a minimum or a maximum on how much Ribbon will cover?

No, Ribbon will cover any appraisal gap up to the Ribbon Max Value.

What happens if I opt-in and the home does not under-appraise?

Ribbon collects the Pay Now fee after your offer has been accepted. If your home appraises at the offer price or higher, the fee paid for opt-ing into Appraisal Protection Pay Now is retained by Ribbon.

Still wondering if Appraisal Protection is right for you?

Use our Appraisal Protection Calculator to understand our process and how we determine costs.

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