Common questions

We know it's complicated. We're here to help.

How it works

What’s the catch? This seems too good to be true.

There’s no catch. Know everything upfront including our pricing and what rent would be if you need time after the closing date to get your mortgage. But don’t take our word for it, hear from our customers how we’ve helped them secure their homes.

How does Ribbon make money?

We make money from our fee, which is 1.95 % of the purchase price.

How is Buying Power different from a lender’s pre-approval?

Lender pre-approvals or pre-qualifications are not promises to buy a home for you. They can fall apart and are conditional on many things such as you keeping your job, your financial situation staying the same. Ribbon’s Buying Power is a full approval. Once we have done our quick, fair valuation on a home, Ribbon is ready to buy a home for you with a Ribbon Offer up to your Buying Power.

How much more likely am I to win in a competitive situation if I use Ribbon?

97 % (Source). Sellers crave certainty, so Ribbon Offers are much more likely to win. Sellers often have to sell before they can buy their next home, or they need to sell for another reason. Because selling is so stressful and uncertain, sellers always prefer offers that are not contingent on someone selling their home or getting their mortgage.

What is an all-cash offer? Why is it preferred?

An “all-cash offer” is an offer to purchase a home where the buyer does not need a mortgage to buy the home. Sellers prefer this because mortgages take months to close and can fall apart due to a variety of reasons, including a buyer’s inability to sell their current home, their credit score going down, the house not appraising at the right value. “All-cash offers” can close quickly and are less likely to fall through. Because of this, sellers always prefer “all-cash offers” and often give the all-cash offers a discount.

What types of homes will Ribbon buy for me?

Ribbon is starting with homes that match the following criteria:

  • Located within our service area (Charlotte, NC right now. We are launching in more markets soon.)
  • Ribbon valuation range of $100K to $600K
  • Single family residential homes, typically 3 beds, 2 baths, with at least a garage
  • We’ll also buy some townhomes and condos that can receive traditional financing and allow for rentals.
  • Clear title held by the seller
  • At least 1,300 square feet
  • Lot size of less than one acre

Of course there are always exceptions, so please reach out at (704) 912-4290 if you want to make a Ribbon Offer on a home that does not fit this criteria and we will try to find a way to help you!

Process

What is the process to make a Ribbon Offer?

  1. Get your Buying Power with a 10 minute application. We’ll get back to you within day or latest within 24 hours with your fully approved Buying Power.
  2. Let us know which home(s) you’re interested in.
  3. Make a Ribbon Offer with your agent. Technically, this means you submit a standard offer to purchase with A. an addendum that legally binds Ribbon to purchase the home in the case you, the buyer, can not on the closing date and B. your Ribbon Approval Letter with your Buying Power. Showing that you’re fully approved to make a Ribbon Offer on this home.

What’s different when I buy the home with Ribbon versus a normal mortgage?

You can make a Ribbon Offer which is guaranteed to close. Because it’s guaranteed to close, sellers strongly prefer it and you can win out in competitive situations and/or get a discount.

Ribbon is able to do this because we buy the home on the closing date in case you need more time. If Ribbon needs to purchase the home, you get to move in and rent with a 1 year lease. You have a 90 day right to purchase the home at the exact same price we bought it for. Once you get your mortgage, we’ll transfer title back over to you.

What if I get my mortgage before the close date?

You get to buy the home at closing! No need to rent. We were glad to help you win and secure your home with a Ribbon Offer.

What if I don’t have my mortgage by the close date?

Ribbon purchases the home first. You get to move in and rent. You sign a 1 year lease with a 90 day right to purchase the home at the exact same price we bought it for.

What if I can’t get my mortgage within the first 90 days?

You get to keep renting. You’re still on the 1 year lease. Ribbon would rather sell the home to you than to anyone else, so we’ll work with you if you need a time extension.

What if I decide not to purchase the home?

In this case, you are still in your lease and can continue renting and living in the home. Ribbon is not in the business of long term property management and may sell the home to another landlord. Because we take a lot of risk on the price of the home and transfer costs, Ribbon charges you an extra 1 % of the home price if you decide not to purchase.

Why do I have to rent? I’m trying to become a homeowner.

Ribbon is able to turn your offer into cash because we promise to purchase it for you. As part of that, we in turn need you to rent from us in the case that we need to purchase your home to reserve it for you.

We’ve found most buyers love the fact that they get to move in and rent while they take their time to get their mortgage. This avoids the cost and stress of moving twice or a high month-to-month rent. Please let us know if this is an issue for you.

When can I move in?

You can move in right after the closing date!

How does closing work?

If you get your mortgage before close, you will close on the home like you would in any standard purchase. This means you will sign the necessary documents to make you the owner of the home and do the final walkthrough. On the close date, the transaction is recorded on the public record and the closing attorney distributes funds.

If you get do not have your mortgage on the closing date, Ribbon will purchase the home first and reserve it for you. Ribbon will handle the closing, but you are welcome to do the final walkthrough with us.

How does the final walk-through work?

If you get your mortgage before close, you’ll do the final walkthrough like you would in any other offer because you are buying the home.

If you get do not have your mortgage on the closing date, Ribbon will purchase the home first. As such, Ribbon will do the final walkthrough with you on the closing date.

Do you sell my data?

Absolutely not. Our business model is entirely based around our service fee.

Pricing

How much does it cost?

Ribbon charges 1.95 % of the contract price or 2.95 % if you rent without buying(i.e. you choose not to buy after we buy the home or you cannot securing financing to repurchase the home back from us).

How much discount can I expect when making a Ribbon Offer?

While this number can vary across markets and even neighborhoods specifically, our research finds that the average Ribbon Offer typically commands a 5 % discount relative to competing bids which have financing contingencies.

When is the fee due?

After your bid has been accepted by the seller and the due diligence period is underway (where applicable), you would pay our Ribbon transaction fee (1.95 % of the purchase price) within 72 hours.

Are there any hidden fees?

Absolutely not. We believe in being transparent and forthright with all of our customers and prospective customers.

What about closing costs?

You can expect to pay the exact same in closing costs as you would in any standard, non-Ribbon home purchase.

In the event that we purchase the home, we would be on the hook for the buyer’s share of closing costs. In the event where you ultimately secure financing and purchase the home, you would be on the hook for paying for your relevant closing costs as normally expected. In the event where we buy the home but you then purchase the home back from us, you would also be on the hook for paying your share of the buyer’s closing costs.

Why should I pay for Ribbon instead of using the fee to increase my bid on a home?

In addition to helping you win your dream home, guaranteeing that you secure the home and get to move in, Ribbon’s offers also typically command a discount of ~5 % or more to the standard home price. When you compare this discount relative to our minimal fee, it’s a no brainer. Winning is only fun when we do it together.

Why does Ribbon charge more if I only want to rent?

In this case, you are still in your lease and can continue renting and living in the home. Ribbon is not in the business of long term property management and may sell the home to another landlord. Because we take a lot of transfer costs and the financial risk on the price of the home, Ribbon charges you an extra 1 % of the home price if you decide not to purchase.

If I get my mortgage after Ribbon buys the home, what price do I buy it back at?

We will resell/convey the home back to you at the same price we purchased it for on the official purchase agreement. No painful markups.

How is the rent determined?

We only charge rent in the event you haven’t secured your mortgage prior to closing. If not, we have you covered. When we buy and reserve the home for you, we charge rent based on fair market value based on similar homes in the area. This covers our costs, but our model is not to make money on rent. In fact, we encourage you to secure your mortgage as soon as reasonably possible so you can own your beautiful new home. The best part is that you will know the rental amount prior to making an offer as part of our mission for you to know everything upfront so you can bid, win and close with confidence.

Do you collect security deposit when I start renting?

A one month security deposit is due prior to the commencement of the lease.

When do you collect rent?

As outlined in the Ribbon Program Agreement(along with the lease agreement), first month’s rent and a one month security deposit are both due prior to the commencement of the lease.

Our Underwriting Process

Does Ribbon store financial account data? Is it secure?

We store your data securely with bank level AES-256 encryption. We use Google Cloud Platform, which has the highest standards of security and is certified ISO 27001 and SOC 3. We also encrypt all your data at rest.

Does Ribbon store my social security number? Is it secure?

We store your data securely with bank level AES-256 encryption. We use Google Cloud Platform, which has the highest standards of security and is certified ISO 27001 and SOC 3. We also encrypt your social security number in our system.

Will using Ribbon affect my credit score?

Because we are promising to buy a home for you, Ribbon pulls your credit report to understand how likely you are to get a mortgage. This may or may not affect your credit score slightly.

Working with Agents

Do I still need to work with a real-estate agent?

Yes. If you do not have an agent, we can introduce you to a Ribbon Certified Agent who has successfully helped home buyers use Ribbon in the past.

Do you work with real-estate agents?

Yes, of course! We believe agents play a key role in the homebuying process and help buyers understand the complexities of buying and selling homes. We partner with real estate agents through our Ribbon Certified Agent program.

Mortgages

Is Ribbon a lender?

Ribbon is not a lender. When you make a Ribbon Offer and close on a home, you are not indebted to Ribbon.

If Ribbon buys the home and reserves it for you because you do not have your mortgage at the close date, you are not borrowing money from Ribbon. You rent from us until you get your mortgage, at which point we’ll transfer the home to you.

How are you better than a bridge loan?

There’s no extra debt or foreclosure hanging over your head with Ribbon. You are not taking on extra debt. We don’t charge interest. If you need more time to get your mortgage, you simply rent the home from us.

If Ribbon is not a lender, do I still need to get a mortgage from a bank?

Yes, you will need to get a mortgage. If you share your financials with us to get your Buying Power, we can, with your explicit permission, introduce you to our partner lenders. They are known to have great rates and exceptional customer service.

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