Did you know that we, as Realtors, have a tool box? The tools are not your traditional hammer and wrench but overall knowledge of different loan programs, contractors, inspectors, engineers and local builders. We at Core Realty Advisors an exciting new tool in our tool box.
Homeowners have shown that they want an option to make the process of selling and buying at the same time easier. We recently attended a seminar, put on by Raleigh Real Estate Law, reviewing a year-long study of the closing statements from OpenDoor© which showed a total of 7-15% in convenience charges. Homeowners are leaving a lot of money on the table for the sake of naming their closing date. We can understand the need to make the transition from selling and buying a bit smoother and we are delighted there is a new option!
Along comes Ribbon©. This program addresses the desire to find and purchase your new home first without losing valuable equity in your home. Here is how it works!
1. Decide if this is right for you. Contact CORE to set up a time to discuss if Ribbon© and get a full understanding of the program.
2. Get prequalified. We have a list of local lender that have a grasp of the program which is critical. We submit that information to Ribbon© to get assigned a Ribbon account manager and get your Ribbon validation.
3. Start house hunting. When you find a property, your offer is backed by a cash guarantee by Ribbon© . Not just a cash offer, but a guarantee to close. The sellers generally like that, but it’s a new concept. At Core, we make sure to give an adequate explanation to the listing agent to understand the power of this offer. Once the contract is accepted, Ribbon© can close as quickly as 10 days.
4. Ribbon© purchases the home for you. There is a 1.95% fee that can be split by the seller and buyer or paid by either party in full. The fee is negotiable and based on the property, can be made up in closing costs with an increased offer price, in some cases.
5. Ribbon© allows you to move in and rent the property. There is a daily rental rate is 0.75% of a purchase price and a rental agreement for 180 days to allow you to sell your previous home.
6. We prepare to sell your property. When you have fully moved out, we work together to properly prepare, stage and market your home to sell for top dollar.
7. Set up your closing date to buy the house from Ribbon. When your property is under contract and we have a closing date, we notify Ribbon© of your ability to now purchase the property. If you plan to buy your new home with a mortgage, this process begins in earnest.
This is a great program for:
Move-Up: For those who are moving up to a bigger home with a large family, lots of pets or anyone who will be challenged by getting their home ready for the traditional market and living in it. You can find a home, move out and show your property in the best light to see for top dollar.
Down-sizing: This is great for those looking to downsize that have lived in their home for a long time. The process of thinning out their belongings and preparing their home to appeal to current buyers can be overwhelming. Ribbon gives them the assurance of knowing where they are moving.
Relocating: This can be excellent for those relocating that can focus on the transition to a new city first and foremost.
New Construction: Many builders are not open to contingency addendums and they are unwilling to go under contract if you have a home to sell. This often puts buyers in a position to have to sell their home and move into temporary houses. The builders we have spoken to are more open to Ribbon than a contingent offer.
You have questions….we did too!
- It isn’t free: Of course, there is a fee for using the program, but it’s nominal in comparison to other programs out there to choose from. Unlike the companies that offer “guaranteed offers” on your home, you do not have to sacrifice your hard earned equity on your property for the sake of convenience. This program eases the burden of buying and selling at the same time rather than grabbing properties with a desire to turn around and sell them for more.
- You do have to be mortgage eligible in most cases which is why it’s important to get prequalified with a local lender who understands Ribbon© upfront. In certain cases, if you own your current home outright and plan to purchase the new home in cash, you could be eligible for the program.
- There is a daily rental fee to move in before you sell. If you have a mortgage on your previous home, you’ll still need to pay that. If you have the ability to afford both, but all your equity is in your current home, this is the program for you.
- The Ribbon© model is really designed to turn over properties to their owners. In the event you can’t buy the home within 180 days, they have the ability to extend that rental contract until your property sells, as long as there is evidence your home can sell. They don’t really want to be in the business of owning properties long term.
- We get a personal account manager that we partner with during contract negotiations and the transition. It’s a collaborative effort between us, your Ribbon© manager and your lender to make sure we manage the process smoothly. They have the ability to be more flexible than what we’ve experienced with other national programs.
- If the 1.95% fee is paid by the buyer, it is due at the time Ribbon© is through with their due diligence on the property so you’ll need to have some liquid money as the buyer. If the fee is paid by the seller, it is collected at closing. This is all determined at the time we are writing the offer. Ribbon statistics indicate that the fee is paid by the seller 85% of the time.
Call us today at 919-295-3660 or put your email below in the comments to set up a time to discuss if this is the right program for you. It takes an astute and educated Realtor to be able to handle this for you. You’re at the CORE of what we do!