Frequently Asked Questions

General

About Ribbon

What does Ribbon do?

Ribbon is where real estate agents collaborate on winning offers. By combining digital offer workflow software, powerful all-cash home financing programs, and white glove customer service, Ribbon has solutions for every home buyer and home seller.

Certainty and simplicity do not exist within the home buying and home selling processes and Ribbon is on a mission to streamline the complexities in order to level the playing field and make homeownership achievable for masses.

Where do you operate?

We currently operate in five states: North Carolina, South Carolina, Tennessee, Georgia, Texas, and Florida with several more in the works!

How does Ribbon make money?

Ribbon charges a small transaction fee to utilize RibbonCash (our cash solutions). There is no cost to use RibbonHub, our offer generation tool (web and iOS mobile app) to make and receive offers.

Is Ribbon an iBuyer?

No. Ribbon enables families and individuals to make make all-cash offers on residential homes. Ribbon does not purchase your existing home.

Is Ribbon a lender? Or a bridge loan company?

No. Ribbon enables families and individuals to make make all-cash offers on residential homes. Ribbon purchases the home on the buyer's behalf and the buyer then has up to 180 days to secure financing from a lender of their choice to repurchase the home back from Ribbon.

Do buyers need agents to use Ribbon?

Yes. Ribbon provides agents the tools to make the best offers for their clients so they can win their dream home.

Ribbon Cash Offers

Cash Program Overview

Why are RibbonCash Offers better?

Traditional cash offers do not contain a financing contingency and typically close faster, so they are appealing for sellers accept; however many cash deals fall apart last minute. RibbonCash Offers on the other hand are even stronger than traditional cash offers because they also waive the appraisal contingency, home sale contingency, and the deal is guaranteed to close once the inspection period ends. Ribbon has a 100% on-time closing rate!

Is Ribbon a rent-to-own program?

No. Buyers must be mortgage-eligible to use Ribbon. Once Ribbon purchases the home the buyer will rent the home back from Ribbon only until they secure financing and repurchase the home.

Who can use Ribbon?

Any mortgage-eligible buyer seeking a leg up to win their dream home. First-time homebuyers utilize Ribbon to waive financing and appraisal contingencies and existing homeowners use Ribbon to win and move into their new home while taking time to prep and stage their existing property and sell it for max value (without the inconvenience of scheduling showings!).

What homes can Ribbon help with?

Ribbon purchases single family homes, townhomes and condos for owner occupants in our states of operation. Our minimum purchase price is $150,000 and our maximum purchase price is $700,000. The home must be on 4 acres or fewer and built after 1974 or have been fully renovated.  Short sales, foreclosures, manufactured and modular homes are not eligible at this time.

Does Ribbon purchase new construction homes?

Yes! We will work with the buyer, buyer's agent and builder to ensure we have the information needed to remove contingencies and guarantee the closing date!

Does Ribbon work with buyers looking to buy investment properties?

Ribbon is on a mission to make homeownership achievable and will only back purchases for primary residences.

Does Ribbon buy the buyer's current home?

No. Our program reserves the buyer's dream home for 180 days while the buyer takes time to sell his or her existing home.

Do buyers need to own a current home to use Ribbon?

No. Ribbon works with all buyers, even those who do not yet own a home. Our RibbonCash Offer solutions are applicable to every buyer type!

Buyer Approval Process

How does Ribbon qualify buyers?

Ribbon uses the buyer's existing pre-approval letter from their lender of choice to determine the amount we can back them with cash. We contact the lender to confirm the details and that's it! Easy peasy.

How long does it take to get qualified?

It typically only takes a few hours to confirm the buyer's pre-approval amount and establish their Buying Power (the amount Ribbon will back them in cash).

What happens after buyers are qualified?

Once we've determined the buyer's Buying Power (the amount of cash we can back them with) you're ready to look for houses. When you find one let us know as soon as possible so our team can value the property and work with the agent to make an all cash offer.

How do you determine how much cash to give me?

We use the buyer's pre-approval letter from their chosen lender. We'll contact the lender to confirm the details. There is no credit application process with Ribbon and so this won't affect the buyer's credit score.

Pricing

What if the home under appraises?

RibbonCash Offers include Appraisal Protection which protects the purchase price at contract price (up to the Ribbon Max Value) in the event the home appraises for less than contract price. To learn more, please visit https://www.ribbonhome.com/appraisal-protection/.

How much does it cost?

Ribbon charges a small transaction fee of 2-3.25% of the purchase price (varies by state) to back offers with our cash and remove contingencies. If the buyer is able to close with their own lender on closing day, the Ribbon Fee is reduced to 1%. Ribbon also charges rent until the home is purchased back from Ribbon by the buyer. The rental amount is not a way for us to make money; it simply covers Ribbon's carrying costs including our cost of capital, taxes, insurance and HOA.

How is the Ribbon Fee paid?

The Ribbon Fee will be fully negotiated on the purchase contract and allocated to Ribbon at closing. The Ribbon Fee is added into the buyer's earnest money deposit (and/or due diligence fee in North Carolina) when submitting the offer. At closing, the attorney will allocate Ribbon's Fee on the settlement statement.

What if the offer is not accepted?

There is no fee to pay if the offer is not accepted.

Do I have to pay two sets closing costs?

While two sets of closing costs exist, Ribbon will pay customary buyer-paid closing costs on the first transaction and the buyer will pay customary closing costs at the repurchase (when the buyer purchases the home back from Ribbon). You will never pay double closing costs.

What happens if the buyer is able to secure financing and purchase their new home before Ribbon’s closing date?

If the buyer secures financing and is able to purchase the home without Ribbon's cash, the Ribbon Fee is reduced to 1% for reserving the home and providing the closing guarantee. This is known as the Ribbon Boost!

How does rent work?

Rent is based on Ribbon's carrying costs of the home: cost of capital, taxes, insurance, and HOA dues. We do not charge a security deposit. Rent is prorated to the day from when Ribbon originally closes on the property to the day the home is purchased back from Ribbon by the buyer.

What if the buyer doesn't repurchase the home?

After Ribbon purchases the home on the buyer's behalf, the buyer is entitled to a 180 day lease term. If the repurchase is not exercised, the buyer will forfeit deposits and rent paid and Ribbon will sell the home.

Making an Offer

How does the valuations process work?

Once the buyer has identified a home (or several homes) of interest, simply enter them into our system. Our team of valuation experts will then research the property, ensure it is within our Buy Box, and use market data to assign the property a "Max Ribbon Value" which is our maximum purchase price. This typically happens quickly, but can take up to 24 hours. In a hurry let us know and we can expedite the process.

What if the buyer wants to make an offer above the amount of cash Ribbon will provide (Ribbon Max Value)?

If the buyer wants to make an offer above this valuation they can do so, but they need to provide additional cash beyond what Ribbon will provide.

Does the buyer have to put down a deposit?

Yes; the buyer will pay the earnest money deposit (and a due diligence deposit in North Carolina) on the contract. These deposits typically represent the buyer's good faith to buy the home; however, when you use Ribbon Cash Offers and the offer is accepted, some or all of the deposits will go toward the Ribbon Fee. The deposits and/or seller paid closing costs in the purchase contract therefore must add up to the Ribbon Fee. For more information on how the Ribbon Fee is paid, please consult the FAQs in the "Pricing" section.

How does the offer work?

RibbonCash Offers use the state-approved traditional offer form. The offer is marked as cash with no contingencies (except an inspection window) and the Ribbon Offer Addendum is attached. The offer addendum states that if the buyer is unable to secure financing on the agreed-upon closing day that Ribbon will step in and purchase the home on the buyer's behalf. Ribbon's software tools enable the buyer's real estate agent to set the offer parameters, add the necessary addenda, and write the RibbonCash Offer in minutes.

Does Ribbon allow seller possession after closing or subleasing during the rental phase?

No. Ribbon's program is designed for the buyer to take possession of the home as soon as the closing has taken place.

I am a seller or listing agent and reiceived a RibbonCash Offer. What's next?

Review the offer and terms as you typically would and make sure you understand the power of the offer in your hands. RibbonCash Offers waive home sale, financing, and appraisal contingencies. RibbonCash Offers are also guaranteed to close following an acceptable inspection, which ensures closing will happen on the agreed-upon date. No more wondering if the buyer's financing will go through, hoping the home appraises or getting caught in a domino effect if another closing falls through-- we've got you covered.

The RibbonCash Offer is negotiated between the buyer and seller via their agents. Once terms and conditions have been agreed to, all parties will execute the Ribbon Offer Addendum which attaches to the standard state contract. The Ribbon Offer Addendum states that if the buyer is unable to close on closing day, Ribbon will purchase the home on the buyer's behalf. This is also the document that waives home sale, financing and appraisal contingencies. From there, the transaction functions as a regular transaction with Ribbon there every step of the way to guarantee the sale following an acceptable inspection.

Inspections and Closing

How does the home inspection process work?

Once we (buyer backed by Ribbon) are under contract on a new home, the buyer will schedule and pay for the home inspection. Ribbon requires a general home inspection on every property and additional inspections may be required depending upon the property type.

Ribbon and the buyer will review the inspection report for repairs. Any Ribbon required repairs must be agreed to between the buyer and seller prior to the end of the inspection/due diligence period and completed at least one business day prior to closing. The buyer may request additional repairs as well.  Credits in lieu of repairs are not an option for the Ribbon required repairs.

Does Ribbon require a home inspection?

Yes; Ribbon requires a general home inspection to be completed on all transactions in order to fully understand the condition of the home.  Depending on the home, we may require additional inspections to further assess the property.


What type of home inspections does Ribbon require?

Ribbon aims to guarantee the health and safety of our residents and therefore requires certain inspections to be completed prior to closing. The results of these inspections are reviewed by our internal team and a list of Ribbon required repairs will be shared to ensure the home meets our standards.

  1. General Home Inspection: required on all Ribbon-backed transactions
  2. Termite: if the general home inspection notates a possible infestation or damage from a previous infestation
  3. Radon: if the home has a basement or below grade square footage
  4. Septic, well and pool: if applicable


Does Ribbon require repairs to be completed?

Possibly, depending on the condition of the home.  We will always require smoke and carbon monoxide detectors to be installed in accordance with local law.  We will also review the home inspection report and call out structural, plumbing issues, electrical concerns and other safety issues to ensure they are repaired prior to closing.  We want to make sure our residents are moving into safe and secure homes with all major systems in good working order so that the home is ready for repurchase when the buyer is ready!


Can the buyer negotiate a repair credit in lieu of repairs?

Ribbon requires a certain set of repairs to be completed prior to closing in order to ensure a safe living environment for our homebuyers.  These repairs include structural, plumbing issues, electrical concerns and other safety issues.  How the buyer and seller negotiate to complete the repairs is up to the individual parties.  The buyer may also request the seller to complete repairs above and beyond the Ribbon Required Repairs.

Can repairs be completed after closing?

Yes; the buyer may complete non-Ribbon required repairs after closing.

What happens if I want to back out?

If you terminate during the normal course of business (please consult your agent), no fee will be owed to Ribbon.

Does Ribbon complete an appraisal?

No; however if the buyer secures financing on time and wants to close without Ribbon, the buyer's lender will likely order an appraisal. If the home under appraises, Ribbon will cover the difference up to our Ribbon Max Value.

Who manages closing the transaction?

Ribbon's amazing team of knowledgable Transaction Coordinators will handle all aspects of closing from A to Z with one of our preferred attorneys. Our team will keep buyers and their agents updated throughout the process and will confirm once we are officially on record!

RibbonCash Offers for Agents

What if Ribbon's preferred title/attorney isn't local?

No problem, we've got you covered! With a remote closing, all parties can complete all signatures from the comfort of your own home or office via your computer.

Why should I work with Ribbon?

Real estate agents are at the heart of what we do: making homeownership achievable. Because you serve the most important role in the real estate transaction, we want to provide support, a way to differentiate yourself amongst other real estate agents, and help you grow your business while you close deals. Real estate agents are uniquely positioned to control nearly every aspect of the real estate transaction. From staging to interior design, offer generation to negotiations, and inspections to repairs, real estate agents are the true heroes holding the deal together and we understand that.

What do I need to get started?

As an agent, you'll simply create an account, input a few details about the potential deal scenario and our expert team will start the process behind the scenes. We will guide you every step of the way and ensure you and your client fully understand the value Ribbon provides, but we will never speak with your client until you give us the green light to do so. Not ready to write the offer? No worries. Lean on your dedicated Ribbon support team to provide Ribbon as a solution for all customers, even if they might not need us!

Why do I need Ribbon if my clients are already mortgage eligible?

Ribbon Cash Offers stronger than financed offers, can close faster than the typical mortgage-backed offer and waive home sale, financing and appraisal contingencies. This greatly improves the chances that the offer is accepted and the buyer wins their dream home.

How do Ribbon Cash Offers work contractually?

Ribbon Cash Offers use the state-approved traditional offer form. The offer is marked as cash with no contingencies (except an inspection window) and the Ribbon Offer Addendum is attached. The offer addendum states that if the buyer is unable to secure financing on the agreed-upon closing day that Ribbon will step in and purchase the home on the buyer's behalf. Ribbon's software tools enable you to set the offer parameters, add the necessary addenda, and write the Ribbon Cash Offer in minutes. If the buyer is able to purchase the home on closing day without Ribbon's assistance, the Ribbon Fee is reduced to 1%. The buyer will also sign the Ribbon Program Agreement which is a document that outlines the terms of our program. Once the offer has been accepted, the buyer will sign a state-approved traditional lease agreement.

In addition to the state-approved traditional offer, what other documents will my buyer complete?

1. Ribbon Program Agreement: This is a document between the buyer(s) and Ribbon detailing the terms of our program.

2. Ribbon Offer Addendum: This document is attached to the state-approved traditional offer and states that if the buyer cannot purchase the home on closing day that Ribbon will purchase it on the buyer's behalf.

3. State-approved standard lease: The buyer will enter into a lease agreement with Ribbon as the landlord.

Will I get commission when Ribbon closes on the home?

Absolutely! By working with Ribbon, you will be paid the advertised buyer agent commission by the seller, even if Ribbon closes on the buyer's behalf. Commission will be paid at the first closing.

How fast can Ribbon close on a home?

NC, SC, TN & GA: 14 business days with our preferred attorney or title company
TX: 16 business days with our preferred title company or 21 business days with seller's choice

RibbonHub

What is RibbonHub?

RibbonHub is a place where agents make, receive, & collaborate on winning offers. Check out a live demo of RibbonHub here.

What makes RibbonHub different from other transaction management systems?

Unlike other transaction management systems, RibbonHub lets listing agents collect and compare offers side by side and streamline their seller’s needs and questions in one place. It also allows buyer’s agents to write offers on the go, saving everyone valuable time and energy.

Does RibbonHub empower me to make offers on the go?

Yes! RibbonHub allows buyer’s agents to make offers on-the-go, from their phone (iOS app or mobile web) or any computer, so that they can get their client’s foot in the door as soon as possible. RibbonHub will automatically build offer documents and connect them to signing programs like Hellosign — standardizing workflow and modernizing the client’s experience. It’s a simple, intuitive flow that will transform a long, detailed process into an easy step.

How does RibbonHub benefit my clients?

The faster an agent can submit an offer, the faster their client wins their dream home -- especially in a multiple offer situation. 

What offers can I write through RibbonHub?

Any offer can be written through RibbonHub, not just a RibbonCash offer.

How do I use RibbonHub as a listing agent?

Once you receive a new listing and enter the home into MLS, simply log into your dashboard.  You will have the option to add your listing to RibbonHub and share a link in MLS that guides agents to submit offers to you directly through RibbonHub.  Should you receive multiple offers, RibbonHub will automatically create a comparison chart that you can share with your sellers with the click of a button!  RibbonHub makes it easy to attract, collect and compare all offers in one place! And don’t worry, we will never share offer details or any any other information that violates our privacy policy or state and national guidelines.

How do I use RibbonHub as a buyer’s agent?

As a buyer’s agent, you can make the winning offer in seconds, on the go.

Is there a fee to use RibbonHub?

Nope, RibbonHub is free to use!

Ribbon for Real Estate Professionals

How does Ribbon help me as a real estate agent?

Real estate agents are at the heart of what we do. We empower agents with financial products, software and tools to present creative solutions to all of their clients, both buyers and sellers. RibbonCash Offers allows buyers to upgrade their pre-approvals to cash in order to win their dream home. RibbonHub allows agents to receive, compare and negotiate multiple offers with ease and our iOS app and powerful mobile experience help agents write offers on the go and send for signatures in a matter of minutes. We believe in partnering with estate agents, home inspectors, closing attorneys, title companies, and all others within the real estate ecosystem to help improve the homebuying and home selling experience and make homeownership achievable. In short, Ribbon helps you work smarter, not harder.

What is a Ribbon Certified Agent?

Ribbon’s certification program combines your real estate experience with your knowledge of Ribbon to create a unique way to stand out, especially in today’s market. Since you serve the most important role in the real estate transaction, we want to provide you with a way to differentiate yourself among other real estate professionals and help you close more deals with unparalleled support. Check out the benefits of becoming a Ribbon Certified agent here.

What are some examples of how RibbonCash Offers function in the real world?

Whether it’s a first time homebuyer, client who needs to sell before they can buy their next home, creative solution to relocation challenges or closing quickly, Ribbon has helped thousands of clients in the markets we serve. Here is an example of how Ribbon functions in the real world.

If you’re interested in being a part of our series of Ribbon case studies, please email hello@ribbonhome.com.