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Ribbon wants to free buyers from the pitfalls of chain transactions – Inman

Attend Inman Connect New York in person or virtually, April 19-21, to join thousands of successful producers who know what it takes to reach the top of the real estate game. Reserve your spot now to gain insights, make new conn…….

Attend Inman Connect New York in person or virtually, April 19-21, to join thousands of successful producers who know what it takes to reach the top of the real estate game. Reserve your spot now to gain insights, make new connections that generate more referrals, and learn from the sharpest minds in the industry. Don’t wait — ticket prices will go up!

Power Buyer Ribbon expanded into the Midwest and Mid-Atlantic during the first quarter, as it seeks to make good on a vow to be up and running in 25 states by the end of the year. With home prices continuing to rise, Ribbon is also supporting home purchases of up to $1 million, up 43 percent from its previous limit.

Founded in 2017, Ribbon partners with real estate agents and lenders to make cash offers on behalf of buyers. Ribbon co-founder and Chief Technology Officer Wei Gan recently shared his thoughts with Inman about how Ribbon will pursue its mission of making homeownership more affordable in a market where prices keep going up.

Gan will be speaking about alternative financing models Tuesday, April 19 at Inman Connect New York.

This interview has been edited for length and clarity.

Inman: What do you make of this market? There’s some talk of a bubble, in terms of home price appreciation, but when you look at the underwriting, borrowers seem to be more solid in terms of credit scores and loan-to-value ratios than during the 2007-09 downturn.

Wei Gan: You see 15 percent to 20 percent home price appreciation, these year-over-year increases, and [your thoughts] immediately go back to the housing bubble, right? There’s absolutely a housing crisis in the United States, and there has been for a couple years. But it’s not a crisis of demand, or a bubble that’s gonna pop — it’s a supply crisis. There’s not enough homes.

As a nation we’re trying to build as best as we can. There’s more new housing starts, but the supply crisis is unfortunately not over. A lot of that is structural. A lot of it, depending on where you are, is about housing zoning policy. We also have a materials crisis, so that slows down building. I know personally, folks who have done home renovations, [who say] prices of lumber and so on have gone up. So the supply crisis is here to stay.

The reality is, there’s just more demand for first-time homeownership, and homeownership in general, than there’s supply for. The pandemic exacerbated that with the great relocation, the great dislocation — …….

Source: https://www.inman.com/2022/04/18/ribbon-wants-to-free-buyers-from-the-pitfalls-of-chain-transactions/

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