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