New Kid in Town
What if someone would buy a house for you? With cash. Let you move into it, and then you could buy it from them at the same price and terms as they bought it? Too good to be true? Actually, it’s not. There’s a new kid in town and their name is Ribbon.
Ribbon is backed by venture capitalists who wanted in the real estate game. Ribbon saw a gap in needs that were not being met and created a solution. There are plenty of iBuyer-type programs. Those are the programs that will give you an offer on your current home. Typically, the offer is quite a bit less than market value and they charge you fees of, up to around 12% in order to not sell the traditional way.
That is certainly one way to go about selling your current home but what if you know it will sell, you just need a bit more time? What if you need to do some painting or some improvements to the house that will be so much easier if you don’t live there? What if you really want to go ahead and move into that new house now so the kids can get settled into school? But wait – you need the money you are going to make from the sale of your current house in order to buy that house. Darn it.
You could get a bridge loan, but that takes time and you really don’t want to deal with all the paperwork. Moving into an apartment until you sell the house is an option but that means you are moving twice and that’s not ideal. Staying with friends or family is not really a great solution since you would be inconveniencing them and most of your stuff would be in storage. You could take that lowball offer from Zillow or Opendoor but you need more than what you would net from that for the down payment on your new house. In walks Ribbon.
Ribbon will buy the new house for you – with cash! The only contingency in the contract will be inspection. This not only makes your offer better, but they can close within a couple of weeks and you can move in. You will pay rent – just to cover their costs – and you will have 6 months to sell your house and buy the new house back from them at the same terms. Unlike the steep fees that some of the other companies charge, Ribbon charges 1.95% of the purchase price of the new house.
Just like the other companies, not all houses will qualify, but it is another great option to explore. Your Realtor can get you more information and if Ribbon is in your area, it could be the solution you are looking for. Then you can be the new kid in town in your new neighborhood while you get a better price for your current home!
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur baby, Tyler, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.