Ribbon Unveils First-Ever Guaranteed Home Transaction
Charlotte, N.C. (PRWEB) May 15, 2018 -- The home buying transaction has not evolved in the last 30 years. It is a known problem that remains complex, opaque and uncertain. Buyers need to manage extensive paperwork, while coordinating a mortgage, appraisal, home inspection and sale of an existing home -- all under intense time pressure. The uncertainty makes it frustrating and stressful for buyers, while making it nearly impossible for families to compete against cash-rich individuals and institutional investors.
Today, New York and Charlotte-based Ribbon unveiled the first-ever guaranteed home transaction platform for buyers, sellers and realtors. Ribbon is a modern financial technology company that delivers certainty, transparency and joy to the home buying process. Ribbon combines the best local knowledge, powerful technology and capital to innovate the $30 trillion real estate industry. Consumers and realtors deserve a better experience, so Ribbon has designed an open platform that welcomes everyone in the home process to participate.
Ribbon launched its service today in Charlotte, N.C., one of the fastest-growing real estate markets in the country. The company has an ambitious plan to scale to several new markets by the end of 2019. Through its private beta, Ribbon has secured a pipeline of $15 million in home transactions over the past 30 days.
Ribbon also announced an undisclosed seed equity financing round from top-tier venture capital firms including Greylock, NFX, Bain Capital Ventures and Nyca Partners -- investors behind incredible brands such as Trulia, Airbnb, LinkedIn and DocuSign. The company has also secured real estate capital to enable more than $2 billion in transactions this year.
“Buying a home is one of the most important milestones in our lives, yet the experience is fraught with fear, uncertainty and apprehension,” said Shaival Shah, co-founder and CEO of Ribbon. “As a community, we must come together to bring consumers an experience worthy of the magnitude of the purchase itself. Ribbon not only simplifies the buying and selling process, but also creates a level playing field for families to compete with institutional buyers in highly competitive markets.”
Today’s home-buying and home-selling challenge
Buying and/or selling a home requires several points of coordination, all of which need to come together at precisely the right time. Today’s average home takes three months to close and experiences several delays with over 15 percent of transactions falling apart altogether. Buyers and sellers seek the same thing: an easy, certain experience.
Further complicating matters is a new threat that has recently emerged. Wealthier individuals, from high net-worth families to institutional investors to well-funded technology companies, have utilized this market inefficiency to their advantage. They entice home sellers with a proposition that individuals can only dream of: offer all-cash at a discount in exchange for certainty of close.
All-cash transactions eliminate mortgage, appraisal and home sale contingencies, and are likely to double your odds of winning a home according to Redfin. These contingencies make up the key points of transaction complexity and removing them dramatically simplifies the closing process. This reduces the available housing supply and makes it much harder for regular buyers to compete against aggressive cash-armed buyers.
Amazingly, 34 percent of homes in the U.S. are now purchased with cash at discounts that can exceed 25 percent. On a year-over-year basis, home supply has declined for 32 straight months, which provides homebuyers with fewer options.Transaction complexity has never cost buyers and sellers more.
Ribbon combines the best local knowledge with the best technology
The Ribbon platform utilizes technology, intuitive software and access to capital to equip consumers and realtors to level the playing field. The platform removes financing, appraisal, inspection and home sale contingencies to make the transaction certain. Everything known upfront, designed for the user.
Buyers receive their personalized Ribbon Buying Power Score, which reflects their home affordability and enables them to make highly competitive all-cash Ribbon offers on any home in the market. They can now also guarantee their move-in date and have the flexibility to secure their mortgage on their own terms, before or after they move-in.
Sellers receive home inspections and home value reports to certify their homes with Ribbon and create buyer trust. Buyers in their community can now have the confidence to make offers with a fast, guaranteed closing. Close fast and receive fair market value.
Realtors receive access to: Ribbon’s capital to empower their clients, as well as cash-enabled consumer leads and simple transaction management tools to offer their clients a delightful experience and a way to out-compete disruptors.
About Ribbon
Ribbon is a modern financial technology company transforming the real estate transaction, delivering certainty, transparency and joy to the home buying process. Ribbon was started by a group of passionate technologists, consumer-centric financial innovators and real estate experts. The team has built market-leading companies and overseen the purchase and sale of over 10,000 homes throughout their careers. The team comes from notable brands such as: LendingClub, Twitter, Spotify and Invitation Homes.
# # #
Ribbon Press Contact:
Assad Bokhari
press(at)ribbonhome(dot)com
Assad Bokhari, Ribbon, http://www.ribbonhome.com, +1 704-912-4290, [email protected]
Share this article