When Ed Averette bought his first home, he, like many new homebuyers, didn’t know much about the process. He didn’t ask all the questions he should have, he made mistakes, but this learning experience became a growing experience. It inspired him to become a real estate agent, so he could help ensure others knew anything and everything. And for the past 13 years, he’s been doing just that.
Rising Prices and Shrinking Inventory
Ed works with over 50 clients a year in the Charlotte market. In the past year, the average sale price in the area has increased by more than $33,000. Housing inventory has dropped by 50%. Last year there were over 10,000 homes on the market. This year, the number dropped to a little over 5,000 homes.
This means that homebuyers who could afford a typical house last year now need tens of thousands more to buy it. On top of that, they have fewer choices when house hunting. “Some buyers have to see 10-20 houses before they bid on one,” Ed shares. “There’s not a lot of inventory.”
Increased Competition and Buying Expenses
Fewer options mean more competition for each house, and, often, multiple offers. So, buyers need a stronger than average bid for a chance at winning a home. One way to strengthen the offer is to cover expenses the buyer normally wouldn’t — like the appraisal fee.
Another way to increase the chances of winning is to be selective about which contingencies are including. Contingencies (for example: sale of a home first) can prevent buyers from winning a house – even if they have the highest offer. While both of these options are great for the seller, they leave the buyer with unexpected costs.
Winning Homes with Cash
Ed doesn’t want his clients to give up on buying a home because of low inventory, rising prices, or surprising costs. So, he looked for a way to make it easier for clients to win homes. That’s when he found Ribbon.
With Ribbon’s Cash Offer program, Ed’s clients can make stronger offers and, since sellers will often choose a lower cash offer over a higher financed offer, can potentially save thousands. Plus, cash offers also shorten the home buying process. Instead of waiting 30+ days for the underwriting process, cash offers can close in as little of 14 days. Without financing, cash offers can go straight to closing after winning the bid, helping Ed’s clients get into their homes weeks faster. And for buyers who struggle with financing, Ribbon’s Cash Offer program can buy the house for them and hold it until they are able to get their loan in place.
One such client was in the middle of the home buying process when they realized they had a financing issue. They had found the perfect home, done an inspection and appraisal, and were set to close on the home.
But, during the loan process, they discovered an issue with their taxes – which prevented them from qualifying for financing. While they could get their taxes corrected, it would take at least 6 weeks.
The seller, who had 3-4 other offers, didn’t want to wait that long to close on their home. So, Ed’s clients thought they would lose their dream home. But, Ed reached out to Ribbon, “I wanted to see what they could do,” Ed shared. “They told me about the program, and we were able to close on the house in time. These deals, if it weren’t for Ribbon, wouldn’t have been deals,” he recalls. “There was no alternative answer to the problems we had. They would have lost earnest and inspection money. And, they probably would’ve given up on the process.”
Facilitating More Purchases
Having the advantage of a cash offer, even with financing challenges, has allowed Ed’s clients to stand a chance in a crowded market—saving them money in the meantime. And with Ribbon, he’s able to make the homebuying process a great experience for every client. A win for everyone!