Frequently Asked Questions

General

About Ribbon

What does Ribbon do?

Ribbon provides agents the tools to make the best offers for their clients so they can win their dream home. Our cash offer solutions enable buyers to make all-cash offers. Our agent tools streamline the offer generation and collection process and are available via web or via iOS application.

Where do you operate?

We currently operate in five states: North Carolina, South Carolina, Tennessee, Georgia and Texas with several more in the works! Our offer generation and collection software (including iOS mobile app) is currently only available in North Carolina.

How does Ribbon make money?

There is a transaction fee to use Ribbon's cash offers. There is no cost to use Ribbon's offer generation tools (web and iOS mobile app) to make offers to listing agents or to request offers from buying agents.

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 can purchase the home on behalf of the buyer. 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 Ribbon cash offers better?

Cash offers do not have financing or home-sale contingencies and so are typically less risky for sellers and close faster. Ribbon cash offers are even stronger than typical cash offers because they're guaranteed to close once the inspection period ends whereas cash offers from other parties can still pull out of a deal at the last minute.

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 or move into their new home while taking the time to sell their existing home for maximum value.

What homes can Ribbon help with?

Ribbon purchases homes 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 fewer than 4 acres. This includes single-family, townhomes & condos. The property must be built after 1974 or have been fully renovated.  Short sales, foreclosures, manufactured and modular homes are not eligible.

Does Ribbon purchase new construction homes?

Yes! We'll just need a little extra information from the builder.

Does Ribbon work with buyers looking to buy investment properties?

Ribbon will only back purchases for primary residences.

Does Ribbon buy the buyer's current home?

No. However the buyer will have up to 180 days to sell their current home and secure financing to repurchase the next one.

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

No, Ribbon also works with buyers who don't own homes. Our Offer Upgrade solution

Approval Process

How does Ribbon qualify buyers?

We use the buyer's pre-approval letter from their chosen lender to determine the amount we can back them with cash. 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. If a buyer has an existing home, we just want to know the expected sale timeline and planned list price.

How long does it take to get qualified?

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

What happens after buyer's 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. For more on the valuation process see below.

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

How much does it cost?

A transaction fee of 2-3% as well as pro-rated rent on the new home until it's repurchased. The cost varies by state and which service is being used. Visit the Buy Before You Sell, Offer Upgrade and Deal Save pages for more information.

How is the transaction fee paid?

The 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 DD deposit in North Carolina) when submitting the offer. Instead of deducting the buyer's deposits from the purchase price at closing, Ribbon will just absorb the deposits on the final closing 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 purchases the home, the transaction fee is reduced to 1% for reserving the home and providing security.

How does rent work?

Rent is based on the carrying costs of the home (our financing fees, insurance, taxes, HOA fees etc) however this does not cover renter's insurance. Rent is charged from the day the home is purchased by Ribbon until the date the buyer repurchases it back from us, pro-rated by the day. A security deposit is not required.

What if the buyer doesn't repurchase the home?

In this case, your buyer is still in their lease, but Ribbon may need to sell the home to another landlord. Our Ribbon guarantee is that we will purchase the home after the inspection period (or Due Diligence in North Carolina). If you decide that you no longer want the home after this period, then the total amount due to Ribbon will be the Ribbon fee, due diligence money (if applicable), earnest money deposit, and 2 months rent (or fulfill 6 month lease).

Making an Offer

How does the valuations process work?

Before backing the buyer with cash we value the property to make sure we're not taking on too much risk. Our team of valuation experts use the latest market information to determine this value. This typically takes about 24 hours, but if you're 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?

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 have to make an earnest money deposit (and a due diligence deposit in North Carolina). 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 towards the transaction fee. The deposits and/or seller paid closing costs in the purchase contract therefore must add up to the Ribbon transaction fee. Fore more information on how the fee is paid, see the questions in the pricing section.

How does the offer work?

Ribbon cash offers's use a standard offer to purchase marked as cash and no contingencies. In addition, we provide an Offer Addendum that acts like a contract assignment which sets out that Ribbon will purchase the home in cash if the buyer does not secure financing as well as how the fees are paid. Ribbon's software tools enables you to set the offer parameters, add the necessary addenda and write this offer in minutes and our staff can provide guidance in how to write the best offer.

Closing

How does the inspection work?

Once we are under contract on the new home the buyer will pay for inspection. Ribbon and the buyer will review the inspection report for repairs. Ribbon looks for health & safety issues, major structural issues, and other hazards with the home and if anything major is found may require repairs of the seller in order to be part of the deal. The buyer may request additional repairs as well.

What happens if I want to back out?

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

Does Ribbon complete an appraisal?

No, however if the buyer secures their financing on time and wants to close without Ribbon they may order an appraisal.

Agents

Working With Ribbon

Why should I work with Ribbon?

We believe agents are integral to the home buying transaction and have developed tools to help agents make the best offers for their clients in a streamlined way. Our cash offer solutions enable agents to win more offers for first time home buyers, current home owners and save deals that are at risk of falling out of contract. Armed with these tools agents are able to generate and convert more leads.Our offers software massively streamlines the offer making process and is available on the web as well as an iOS app.

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 have no financing contingency and are stronger than financed offers. This greatly improves the chances that the offer is accepted and the buyer wins their dream home.

The Transaction

How do Ribbon cash offers contractually work?

Ribbon cash offers's use a standard offer to purchase marked as cash and no contingencies. In addition, we provide an Offer Addendum that acts like a contract assignment which sets out that Ribbon will purchase the home in cash if the buyer does not secure financing as well as how the fees are paid. The buyer can still close with their own financing if they manage to secure it in time and in this case the transaction fee is reduced.

What documents does my buyer need to complete?

Program Agreement with the buyer for them to agree to the program. Offer Addendum with the seller to outline how the Ribbon will purchase the home and how the fees are paid.When they move in, lease agreement for the lease.

Will I get commission when Ribbon closes on the home?

Yes, you'll get the buying agent commissions when Ribbon purchases the home.

How fast can Ribbon close on a home?

14 days in NC, 21 days in SC, TN, GA and TX.