Frequently Asked Questions

General

About Ribbon

What is Ribbon?

Ribbon is where real estate agents collaborate on winning offers. We combine a digital offer workflow software (called RibbonHub), powerful all-cash home financing programs (called RibbonCash), and white glove customer service, to offer solutions for every home buyer and home seller.

Where is Ribbon available?

We currently operate in select cities in the following states Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, MIchigan, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia.

How does Ribbon make money?

We charge a small transaction fee to utilized our cash offer solutions, RibbonCash and RibbonCash+.

There is no cost to our offer generation tool (web and iOS mobile app), RibbonHub, to make and receive offers.Learn more about our pricing here.

What is Ribbon's mission?

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

Is Ribbon an iBuyer?

No. iBuyers are companies that use technology to instantly make offers on homes.We enable families and individuals to make all-cash offers on residential homes. This keeps homes in the community, not in the hands of institutional investors. We do not purchase your existing home.

Is Ribbon a lender? Or a bridge loan company?

No, we work with lenders to provide flexible options for families and individuals looking to buy a home. We do not offer bridge loans.In fact, our RibbonCash program "RibbonReserve" eliminates the home sale contingency, allows you to move in right away, and gives you extra time to sell your home.

How do I get started with Ribbon?

If you are a buying agent, you can get started with Ribbon by making an account on Ribbonhome.com. If you’re a homebuyer or looking to sell, please contact your agent to get started.

Ribbon Cash Offers

Cash Program Overview

Why are RibbonCash Offers more competitive than traditional cash offers?

Unfortunately, cash deals can fall apart last minute for a variety of reasons. RibbonCash Offers are stronger than traditional cash offers for two reasons.

The first is that we are able to waive the appraisal contingency and home sale contingency—eliminating two contingencies that regularly lead to deal fall through. The second benefit is that the deal is guaranteed to close once the inspection period ends. We have a 100% on-time closing rate!

Is Ribbon a rent-to-own program?

No. Buyers must be mortgage-eligible to use Ribbon and must secure financing within 365 days to repurchase their home from Ribbon.

What type of buyers can use Ribbon?

Any buyer who is mortgage-eligible can use Ribbon. We work with all types of buyers. Just to name a few, we often work with first time homebuyers, buyers with an existing home to sell, those relocating, or those looking for a new construction.

What homes qualify for RibbonCash Offers?

We purchase single family homes, townhomes, and condos for owner occupants in our states of operation.

Our minimum purchase price is $100,000 and our maximum purchase price is $1 million. The home can be on no more than 4 acres. It must have been built after 1960, have been fully renovated after 1960, or be a to-be-built construction. Short sales, foreclosures, manufactured, and modular homes are not eligible at this time. If applicable, please check with the HOA to see if there are rental restrictions in place.

Does Ribbon purchase new construction homes?

Yes, we will support purchasing homes that are to be built within 6 months of closing.

Does Ribbon work with buyers looking to buy investment properties?

No, currently, we only support purchasing a primary residence.

Does Ribbon buy homes?

No. Our RibbonReserve program reserves the buyer's dream for up to 365 days, providing buyers with the ability to move into and rent their dream home as they work toward purchasing the home back from Ribbon.

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

Nope! We work with all buyers, even those who do not currently own a home.

Buyer Approval Process

How does Ribbon qualify buyers?

We use the buyer's existing pre-approval letter from their lender of choice to determine the amount of cash we can back a buyer with—which we call Ribbon Buying Power. We take care of contacting the lender to confirm the details.

How long does it take to become qualified for Ribbon?

On average, it takes 24 hours or less to be qualified. If the matter in urgent, your Ribbon advisor may be able to assist with expediting buying power.

Pricing

What if the home a buyer would like under appraises?

RibbonCash Offers include Appraisal Protection, which protects the purchase of the home even in the event the home under appraises.

How much does it cost to use Ribbon?

An outline of our pricing can be found here.

What is a Ribbon Fee and how is it paid for?

If an offer is accepted, a Ribbon fee is added. It is a small fee paid to us for our work in the offer process.

The Ribbon fee is usually paid in full by the buyer. However, RibbonCash fees may be waived if you obtain a mortgage through one of our partner lenders. You may also negotiate directly with the seller to cover the fee.

What if the home buying offer is not accepted?

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

Do I have to pay two sets of closing costs if I am using RibbonReserve?

While two sets of closing costs exist when using RibbonReserve, we 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 us). 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?

That's great! Since RibbonBoost was used, they would be responsible for a 1% fee, instead of the RibbonReserve fee you'd need to pay if using RibbonCash. Please visit our pricing page here.

How does leasing work while using RibbonReserve?

If a buyer is using RibbonReserve then the daily rate is prorated to the day after we close on the property. We do not charge for closing day, as we do not guarantee funding same day.

The daily rate is determined once we complete the home valuation—and is based on carrying costs of the home, including cost of capital, taxes, insurance, and HOA dues. We do not charge a security deposit.

What if the buyer doesn't repurchase a RibbonReserve home?

A buyer will need to provide 30 days notice. They will be responsible for paying an early termination fee and will also forfeit any excess deposits (over the required fee amount they agreed to pay) at time the offer contract was accepted.

Making an Offer

How does the home valuation 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)?

We allow buyers to offer up to 5% above our max value, as long as it is not more than their Ribbon Buying Power. The buyer will need to add the overage amount into their earnest money deposits upfront in addition to the Ribbon fee percentage. Receipt of this fee will be needed prior to the end of the due diligence period.

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

Review the offer. RibbonCash Offers waive home sale, financing, and appraisal contingencies. They are also guaranteed to close following an acceptable inspection, which ensures closing will happen on the agreed-upon date. Don't worry about if the buyer's financing will go through, if the home will apprais correctly, or if the buyer's homesale falls through—we've got you covered. The RibbonCash Offer is negotiated between the buyer and seller via their agents. If approved, we begin next steps.

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

Ribbon allows 14 days of seller possession after closing for RibbonReserve deals. In RibbonBoost deals, Ribbon allows for unlimited days with an agreement that if Ribbon ultimately has to purchase the home on the buyer's behalf this timeframe will be reduced to 14 days.

Does the buyer have to put down an earnest money deposit?

A buyer will pay their 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 RibbonCash 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. Buyers will not need to pay a deposit again when they repurchase the home from Ribbon.For more information on how the Ribbon Fee is paid, please consult the FAQs in the "Pricing" section.

What forms are needed to make a RibbonCash offer?

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 automatically attached.

The offer addendum states that if the buyer is unable to secure financing on the agreed-upon closing day that we will step in and purchase the home on the buyer's behalf. Our 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.

Agents must still submit a FHA/VA addenda to sellers upfront, even though the financial contingencies are lifted by the Ribbon Addendum. Lenders will not fund if they do not have the FHA/VA addendums signed. Sellers may not sign this addenda after due diligencey is up, in fear that the buyer will back out and they'll lose their due diligence and earnest money deposit.

Agents will need to add the addenda provided by the listing agents, which the sellers have filled out and signed. If they do not, our platform will automatically add a blank addenda on their behalf.

Inspections and Closing

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.


How does the home inspection process work?

Once a Ribbon-backed buyer is under contract on a new home, the buyer will schedule and pay for the home inspection.

We require a general home inspection on every property and additional inspections may be required depending upon the property. We'll review the inspection report for repairs with the buyer. 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. Credits in lieu of repairs are not an option for the Ribbon Required Repairs. If the buyer would look to ask for any additional repairs, this would be the time to do so as our required repairs will not be a comprehensive list of all repairs needed.

If the RibbonReserve program is being utilized, we require any safety/structural-related repairs to be completed prior to move in. This may include smoke alarms and CO detectors, issues concerning access to the property like broken/inoperable windows and doors, etc. This is to ensure all tenants have a safe and secure home during the lease period after we close.

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

We will allow buyers to take a seller credit for repairs, if the seller will give the buyer access to complete these repairs before closing and the buyer would like to take responsibility for all repairs. We will retain the credit upon our purchase of the home and reimburse the buyer for it when they repurchase. It will be allocated as part of the seller's closing costs.

Does Ribbon require repairs to be completed?

If the buyer is utilizing RibbonBoost, Ribbon Recommended Repairs would be outlined. However, we do require a certain set of repairs to be completed prior to closing, including but not limited to safety issues, if a buyer is using the RibbonReserve program, these repairs are Ribbon Required Repairs.

These repairs may include structural, plumbing issues, and electrical concerns. How the buyer and seller negotiate to complete the repairs is up to the individual parties. The buyer may also request the seller complete these repairs.


Can repairs be completed after closing?

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

What type of home inspections does Ribbon require?

General Home Inspections are required on all Ribbon-backed transactions. A termite inspection is needed if the general home inspection notates a possible infestation or damage from a previous infestation.

If the home has a basement or below grade square footage, a radon inspect is needed. Septic, well, and pool inspects will be needed, if applicable.


How is closing different with Ribbon?

If we are purchasing on behalf of the buyer (aka using RibbonReserve), all proof of Ribbon Required Repairs must be submitted a minimum of 24 hrs before closing day, so our team can approve. Day of the first closing, we will close remotely. There will be no set closing time, only a set date. We'll review and approve all closing documents, and send via e-signature to our authorized signer.

A key exchange will need to be arranged, but neither agents and buyers will have to attend closing. We also encourage the buyer to plan on moving in one business day after closing, as we cannot guarantee same day funding, or that the seller will release the keys before the deal is funded or recorded. We do not charge rent for the day of closing, and discourage buyers from scheduling closing on the last day of the week, as funding may be delayed to the following Monday.

If your buyers are using RibbonBoost then prior to closing we will review all closing documentation regarding the Appraisal Protection and Ribbon Fee. If Appraisal Protection is being used, we will wire the amount directly to the attorney's office/title company on the day of closing.

What happens if a buyer would like to back out?

If buyers terminate during the course of the inspection period then no fee is owed to Ribbon. We will continue the house hunting with the buyer. If the buyer terminates after the inspection period then the buyer will forfeit their deposits. Ribbon will move forward with the closing, subject to any right of termination due to the seller's or seller's agent action. If Ribbon does not exercise its right to term, Ribbon is guaranteed to close on the home after this point in the transaction.

If the buyer and seller agree to mutually terminate at any point during the transaction, even after the due diligence period, this terminates our involvement and no fee is owed to Ribbon.

If my buyer is closing with their own financing, can they request repairs that they want to be performed prior to closing from the seller?

Yes, if a buyer is willing to take responsibility for all our Ribbon Required Repairs in the event that we need to step in to save a deal, then buyers can negotate repairs with the seller without our involvement.

Does Ribbon complete a home appraisal?

Ribbon does not appraise the home. During the closing process, we will order a third party valuation of the property for internal purposes to determine the market value of the home, but this is strictly for Ribbon's internal purposes and the valuation does not effect the transaction in any way. The buyer's lender of choice will be responsible for ordering a formal appraisal as part of the standard mortgage underwriting process once the buyer is ready to secure their financing.

Who manages closing the transaction?

Our preferred attorney relationships help ensure a smooth closing as they are already familiar with our closing process. However buyers may use their own attorneys. We also do not require Reserve buyers to repurchase with the same attorney we used, or one of our preferred attorneys—however it is preferred. Please reference our fact sheet on Ribbon Approved Closing Partners here.

What documentation does Ribbon require prior to the end of the DD/Inspection period?

We will need signed Ribbon Required Repair and state repair agreements.

If using RibbonBoost, this will outline the seller's responsibility in any repairs. When utilizing RibbonBoost it is Ribbon Recommended Repairs.

If using RibbonReserve and the buyer is looking to complete all repairs prior to closing, the state repair agreement will have to assert that the seller is granting access to the buyer to perform these prior to closing, this is Ribbon Required Repairs. When utilizing RibbonReserve it is Ribbon Required Repairs.

RibbonCash Offers for Agents

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

Most of our preferred attorneys also offer mobile, remote, or mail-away closings.

What is the minimum inspection timeframe?

The minimum inspection timeline is 7 calendar days from the date of execution for all states.

Why should I work with Ribbon?

We offer a competitive edge that allows buyers to compete with traditional loan products in a heavily cash favored market by removing all offer contingencies (financial, appraisal, home sale). Buyers are given extra time to close with or obtain their own financing—and with a guaranteed purchase, you can feel free to negotiate more aggressively than you could even with a cash offer, because we promise to purchase the home even if the buyer cannot.

What do I need to get started?

As an agent, you'll simply create an account on Ribbonhome.com. You'll then 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.

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

RibbonCash Offers are stronger than financed offers, can close faster than the typical mortgage-backed offer and waive home sale, financing and appraisal contingencies. Ribbon also guarantees closing upon satisfactory inspection of the home. This greatly improves the chances that the offer is accepted and the buyer wins their dream home.

How do Ribbon Cash Offers work contractually?

We are not a second buyer, but a third-party to the transaction (a back-up cash offer). We allow the buyer to pursue their own financing, and will only step in to purchase if the buyer cannot close with their own financing by the set closing date. If we do need to step in and purchase, no need to amend the contract. Our Ribbon Addendum lays out our relationship to the deal. Once the offer terms are agreed upon then buyer and seller sign the Ribbon Offer Addendum and we can close on the property on behalf of the buyer without any changes being made.

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: The buyer, seller, and Ribbon are all bound to the contract by the Ribbon Addendum, as it is attached to the state-approved traditional offer. It 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.

4. The signed Ribbon repair documents: The Ribbon Required Repairs document and state repair agreement (depending on seller responsibility or RibbonReserve terms) must be signed and submitted by the end of the due diligence period.

How fast can Ribbon close on a home?

In a minimum of 14 days in NC, SC, TN, GA, AL, TX, and FL and In a minimum of 21 business days in IN, MO, OK, OH, VA.

Will I get commission when Ribbon closes on the home?

Absolutely! We do not take a cut of your commission. Like with any transaction, your commission comes from the seller and potentially the buyer, if the buyer and seller would like. If a client is using RibbonReserve then commission will be paid at the first closing.

Do we need to close in 14 business days?

No. 14 business days is our minimum. You are able to extend the closing date based on what the seller would like.

Ribbon for Lenders

The Ribbon fee varies by state, where can I see a breakdown of those costs?

Ribbon fee information, organized by state, is available here.

Am I able to sell Ribbon in my state?

We currently operate in select cities in the following states Alabama, Arkansas, Colorado, Florida, Georgia, Indiana, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Virginia.

If a Buyer is renting the property and can't secure financing by the end of the lease term, what happens?

Unfortunately, we're unable to hold that property beyond the lease period (180 or 365 days). In this case, we would put the home back on the market. So the buyer would have to move out.

Under RibbonReserve, if Ribbon has purchased the property for the Buyer, and the Buyer is pre-approved for a FHA loan, due to HUD rules regarding tenant/landlord, is there an extension allowed past the lease period? Do any fees or contractual items change?

Yes, if the Buyer remains pre-approved, the tenancy is extended to 210 days. We do not charge any additional fees, and the Buyer would pay their usual closing costs.

If a Buyer uses RibbonReserve, at what point do they pay the Ribbon fee?

The fee would be paid after the initial offer has been accepted.

Is the home inspection separate from the appraisal?

Yes, the appraisal is ordered by the lender and the inspections are ordered by the buyer. So they are performed separately.

Will buying power and valuation requests on homes be reviewed on the weekends?

Yes, both teams have coverage 7 days a week.

How long is a Ribbon valuation valid for?

A Ribbon valuation on a property is valid for 14 days. If the offer is not made/accepted within 14 days, it would need to be re-evaluated.

If the Buyer is using RibbonBoost, why do they have to pay another Ribbon fee for RibbonReserve?

We require the RibbonReserve fee because if a buyer falls out or isn't able to secure financing after being pre-approved, we have still made the guarantee to the seller to purchase the home. If the Buyer does use RibbonBoost, we will credit the remainder amount to their closing costs, just like earnest money would traditionally be used.

If the home under-appraises, does Ribbon cover the difference?

Yes; Ribbon will bring cash to the closing to cover the difference between the appraised value and contract value, up to the Ribbon Max Value.

If a Buyer uses RibbonReserve, when will they know what their daily rental rate will be?

The daily rental rate is determined once we complete the home valuation—and is based on carrying costs of the home, including cost of capital, taxes, insurance, and HOA dues. We do not charge a security deposit.

Are there any loan types Ribbon does not work with?

We work with all conventional, FHA, and VA loans.

For Buyers who need help with closing costs, can seller concessions be negotiated into the contract?

Yes, the Buyers and Sellers can negotiate who covers the cost of the Ribbon fee and/or closing. The payment of the Ribbon fee by the Seller is subject to restrictions based on loan type.

What is the maximum or minimum amount of cash Ribbon can back a Buyer with?

Our buy box is from $100,000 to $1 million dollars.

Does Ribbon sell mortgages?

No, we are not a lender.

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?

RibbonHub lets listing agents collect and compare offers side-by-side, as well as streamline their seller’s needs and questions in one place. Buyer’s agents can 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?

Time can be the difference between winning and losing a home. So the faster an agent can submit an offer the better, 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, you will have the option to add your listing to RibbonHub on your dashboard. This will share an MLS link that guides buying 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.

Is there a fee to use RibbonHub?

Nope, RibbonHub is free to use!

Is RibbonHub available on smart phones?

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 HellSign — 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 you can do from anywhere you have your phone.

Ribbon for Real Estate Professionals

How does Ribbon help me as a real estate agent?

We offer creative solutions to make homeownership achievable in a cash-driven market. Our offers are highly competitive in multiple offer situations, and may be the favorite, even when the offer is not the highest or the fastest to close.

What is a Ribbon Certified Agent?

Our 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?

Examples of how we've helped buyers, sellers, and agents can be found on our blog.

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