Knock, Knock, Who’s There?
Knock, the iBuyer start-up based in Atlanta, is there…in Atlanta, Phoenix and Las Vegas (and soon to be everywhere) to unveil its new home trade-in model. Knock buys the new home the client wants in an all cash transaction, sells that same house to the client after making all the repairs and improvements and then lists the client’s existing “old” house.
Sounds pretty smooth, right? According to Knock’s CEO, Sean Block, “It’s a completely different way to buy and sell (homes) that helps the customer avoid the uncertainty and inconvenience of the traditional home sale without having to give up any additional equity.”
Knock, supposedly, handles the entire transaction. Knock indicates it
– will arrange getting the client pre-approved to qualify for a mortgage on the new house
– will buy the house the client wants in an all-cash transaction
– will make all the repairs and improvements needed on that new house and roll those costs into the client’s new mortgage
– will make ready (repairs and associated costs) the client’s old house and put it on the market
– the client can move into the new house before Knock sells the old house
– will charge the client a 3% commission when the old house sells.
This home start-up is a hybrid brokerage- house flipper with this trade-in model. And Knock has no competition in such a trade-in model as neither OpenDoor nor OfferPad, its natural competitors, has yet to offer its own iteration of this buying model.
The business intention is to offer the client “convenience, simplicity and reassurance.” The client doesn’t’ t have to worry about
– the timing between closings,
– getting equity out of the old house to buy the new one
– having to move into the new house before the repairs are complete
– being able to move into the new house in time for the kids to start school.
Are there real estate agents involved with this trade-in model? Knock has its own agents who are salaried so the client doesn’t have to worry about this either.
Knock, Knock…is this truly a one-stop shopping, buying and selling process?