New York-based startup Ribbon is once again partnering with independent real estate brokerage Crye-Leike to launch its Power Buyer services in a new state — Arkansas — as Ribbon continues to pursue its goal of serving half of the U.S. by the end of the year.
Arkansas is the fifth new state Ribbon has added this year, giving it a presence in a dozen states. In addition to Arkansas, Ribbon’s cash offer program is available in North Carolina, South Carolina, Texas, Tennessee, Georgia, Florida, Alabama, Missouri, Oklahoma, Virginia and Indiana.
While Power Buyers like Orchard and Flyhomes are vertically integrated with in-house agents and lending operations, Ribbon is an “open Power Buyer,” partnering with real estate agents and lenders to allow homebuyers to make cash offers of up to $1 million with Ribbon’s backing.
When entering new markets, Ribbon will often announce a real estate brokerage as an initial launch partner. In launching services in Virginia in March, Ribbon partnered with Weichert Financial Services. In December, Crye-Leike was Ribbon’s partner in launching services in Alabama.
With 3,200 agents, Crye-Leike claims to be the third largest independently-owned real estate brokerage in the nation, and the largest serving markets in Tennessee, Arkansas, Georgia, Mississippi and the Mid-South.
Power Buyers market themselves as providing an edge to homebuyers in markets where low inventory and competition with investors can lead to bidding wars that are often won by buyers making cash offers. According to data published by Zillow, there were 2,225 homes listed in the Little Rock, Arkansas, market in April, down 18 percent from 2,702 a year ago.
“We’re excited for our agents and buyers in Little Rock, as leveraging Ribbon will allow them more success [with] their offers,” said Angie Johnson, managing broker of Crye-Leike in Benton, Arkansas, in a press release announcing Ribbon’s entry into Arkansas. “By making offers not contingent on appraisal and the equivalent of cash, they can compete with investors. It’s a win for the buyer, the seller and our agents who show fewer houses to get an accepted offer.”
Ribbon had previously announced plans to have a presence in 17 states by the end of June, which means it could be announcing launches in as many as five additional states in the weeks ahead.
Ribbon, which announced a $150 million Series C raise in September, attributes the company’s growth to “deep relationships with real estate agents and lenders to collectively support everyday buyers. Ribbon is the only innovation in the space where buyers are encouraged to work with their preferred real estate agent and loan officer of choice.”