Introducing Ribbon's 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. Ribbon is here to make the possibility of homeownership a reality by offering contingency-free cash offers on your behalf. The best part? We now allow you to waive the appraisal contingency for all deals knowing Ribbon's got your back.
Ribbon's Appraisal Protection is applicable on all Ribbon Cash Offers and guarantees your contract price up to our Ribbon Max Value. Now you can make your first offer your best offer with peace of mind.
Connect with your dedicated Account Manager today and start writing the strongest offers in today's market: cash, no financial, home-sale or appraisal contingencies, and guaranteed to close after the inspection.
What is Appraisal Protection?
Ribbon's Appraisal Protection guarantees your contract price up to our Ribbon Max Value. If the home appraises for a lower value than the contract price, Ribbon will make up the difference for no additional fee. This provides the seller with peace of mind since a low appraisal won't derail the closing.
It's applicable on all Ribbon Cash Offers which means that your offer will have no financial, home-sale or appraisal contingencies!
Example transaction
Let's say you want to make an offer on a home listed at $350,000. You request a valuation from Ribbon through our platform and we value the home at $365,000 (this is the Ribbon Max Value). It's a competitive market so your buyer wants to offer over list price, at $360,000. If the home appraises for $355,000, usually you'd have to attempt to negotiate with the seller or walk away from the deal, however with Appraisal Protection, Ribbon will cover the difference of $5,000.
- $350,000 List Price
- $365,000 Ribbon Max Value
- $360,000 Contract Price
- $355,000 Appraised Value
- Appraisal Protection Amount: $5,000
How does Appraisal Protection work?
Write a RibbonCash Offer up to the Ribbon Max Value
- When you use the Ribbon platform to prepare an offer we'll value the home and provide you with the Ribbon Max Value. This is the maximum amount of cash we can back your buyer with. We stand behind this value and will offer appraisal protection up to this amount.
- Make sure to let the listing agent know that your offer has no financial, home-sale or appraisal contingencies!
Ribbon Boost: Appraisal is protected when your client purchases
- If you plan to use our Ribbon Boost solution then you'll order the appraisal once the offer is accepted.
- If the appraisal value is in line with the offer price, great! If it comes in below, our Appraisal Protection will kick in and we'll work with you and the listing agent to make adjustments where needed to make the seller whole. All details will be handled by your dedicated Transaction Coordinator.
Ribbon Reserve: Appraisal is protected when your client repurchases
- If you plan to use our Ribbon Reserve solution, then there is no appraisal before the first close since we'll purchase the home at closing in cash. There will be an appraisal when your client repurchases the home back from us. If it comes in below the repurchase value, our Appraisal Protection will kick in and we'll lower the repurchase value to the appraisal value.
How is Appraisal Protection represented in the paperwork?
You can find the legal language for Appraisal Protection in paragraph 3 of the Ribbon Offer Addendum and paragraph 2.04 of the Ribbon Program Agreement.
