Real estate technologies have made selling your house simpler than ever before. Trade-in models offered by Knock Real Estate, such as its House Swap program, allow sellers to pick a new home before selling their old one.
Choosing a new property before selling an old one is Knock Real Estate’s primary objective. Can I sell my current house before I know where I’ll relocate? Knock’s exclusive Home Swap program can solve this problem.
Traditionally, you would buy a home before you sell your current one if you can afford it. It is possible to pay two mortgages at once if you qualify for two mortgages.
It examines the benefits and drawbacks of Knock’s Home Swap program. However, Knock’s service region is limited, and its costs are high compared to its competitors.
Continue reading to see whether Knock Real Estate is perfect for you.
- Consumer Warning: According to our investigation, Knock Real Estate customers had severe violations such as privacy infringement, deceptive advertising, and being directed to inferior, high-cost items.
- Cons: Although Knock promises to be free, there are substantial hidden fees of commission you pay as a kick-back upon closure. This cost is not disclosed on the settlement statement by Knock.
- Bottomline: Working with Knock Real Estate is not recommended for first-time home sellers. Alternatively, you can list your home on the MLS for a small flat fee with Houzeo.com, a tech platform that lets you work with a listing agent without paying a commission.
What exactly is Knock Real Estate?
Knock uses the trade-in concept instead of directly selling or buying properties, simplifying transactions for sellers. In addition to underwriting your purchase of a new house, Knock assists you in listing and selling your old one.
You won’t have to worry about juggling two mortgages or dealing with closing time issues when you sell your current home with Knock Real Estate.
» Companies that Buy Houses for Cash: Check out The Best iBuyer and Cash Companies in America.
What is the Process of Knock Real Estate?
The Knock Home Swap method appears straightforward, but how does it truly work? The first step is to qualify. With a non-contingent offer, you’ll help appeal to sellers by performing thorough credit checks. Knock will cover up to $25,000 in-home repairs, ensuring that your property sells for top value.
You can utilize this money to aid with sale preparation and marketing. If you sell the house to Knock, Knock will pay all closing costs. It’s basic and straightforward.
Knock Real Estate and its Process
To pre-qualify for a house loan, you submit your information to Knock Real Estate. It is possible to finance your choice of a new home if you meet the requirements.
If the seller accepts your offer and you close, you may move in and are only liable for the new mortgage payment. As Knock assists you, you’ll list your former house and prepare it for sale.
If no buyers appear within 6-months, Knock will buy the property. The mortgage payments, repair costs, and other expenses that Knock advanced are repayable after you sell your previous house.
There is also a “convenience charge” of 1.25% to consider.
Is Knock Unique to an iBuyer?
You may wonder how Knock differentiates from iBuyers such as Opendoor or OfferPad.
An iBuyer is a large real estate corporation that will pay cash for your home. They calculate the worth of your house using a complicated algorithm and then make you a cash offer.
They will then perform any necessary repairs and try to sell your home for a profit. The advantage here over traditional real estate transactions is the Realtor will sell your home to potential buyers until you negotiate or accept an offer.
You win when agents compete
Most iBuyers are drawn in by how simple and stress-free the procedure is for vendors. It’s as simple as visiting their website and completing the paperwork.
If the iBuyer is interested, you will often receive a cash offer from them within 24 hours.
You must think about the offer carefully
Typically, an iBuyer will make you a lower offer on your house than you expected. And, due to the enormous amount of properties they sell, they will not be interested in bargaining after quoting you a price. However, you can close rapidly, in days or weeks rather than months.
iBuyers determines the worth of your house using an automated value model (AVM). Based on comps in your market, this algorithm produces results using their proprietary software.
Due to iBuyers’ reliance on technology, they might never even set foot in your home.
A flipper is not an iBuyer
They do not want to invest time and money in house improvements.
Their whole business strategy relies on purchasing a property in good shape that they can offer promptly and profitably. iBuyers might be picky about the houses they buy since they want to return their money as soon as possible.
Although specific credentials differ per firm, the following are some of the most frequent:
- There are no substantial repairs required
- Not too old (hidden surprises such as old wiring)
- Not overly unique or crafty (harder to sell)
- $150,000-$600,000 is a price range close to the national median (although they may go higher in more expensive markets)
- Many iBuyers refuse to purchase condominiums
iBuyers provides ease and simplicity, but Knock’s process caters to homeowners looking to sell and buy a new home. iBuyers only assists you when you sell your house by purchasing it (for a below-market price).
Knock allows you to pay one mortgage, move once, and avoid the hassle of closings and contingencies. The process is simplified if you are willing to pay for convenience. iBuyers cannot provide any of these services.
What exactly is Knock Nest?
Knock Nest is a product provided by Knock Real Estate that allows you to sell your house to the firm and then rent it back. You may rent it for as long as you wish or buy it from them.
The steps are as follows:
- Determine whether you and your house are eligible for the program.
- If you qualify, you will have immediate access to your equity.
- It is your choice whether to continue renting from Knock or move out. You can also choose to sell your house. The property can run for rent or purchase for a year or two.
It is a new initiative that started in December 2020. Homeowners struggling financially during the COVID-19 epidemic should find this scheme appealing.
» For Sale By Owner Websites: The Best FSBO Sites in America.
What are Knock’s fees?
We’ve proven that Knock Real Estate’s Home Swap Program may be beneficial and convenient for people who use it, but is it expensive? All the convenience features, including the $25,000 advance from Knock, must be paid back.
You’ll also have to repay any advances made for a down payment, mortgage payments, etc. Their convenience charge is 1.25%, and you may pay it at closing or include it in your escrow and borrow.
The Knock fee is much higher than most loan origination fees, even though Knock equates it with an origination cost. You’ll also have to pay regular closing costs, ranging from 2-5% of the home’s value, and include HOA fees, attorney fees, transfer fees, escrow charges, and other expenses.
Because you’re buying and selling, you’ll almost certainly pay a share of the closing costs for both sides of the deal.
Knock Real Estate: Pros and Cons
Here’s a short rundown of Knock Real Estate’s pros and cons.
- There is only one mortgage payment.
A typical sale would need you to consider contingencies and the possibility of overlapping mortgage payments. Knock’s Home Swap program will cover the extra mortgage payment, relieving your concerns and making the procedure more straightforward.
- Guaranteed to be your new home
Knock’s House Swap business strategy ensures that you may locate a new home without worrying about selling your old one. It reverses the typical method of selling before purchasing. Because you may propose a non-contingent offer to sellers, your proposal is more likely to win (because it lacks conditions).
- You’re still making payments on two mortgages
Knock is billing you for the mortgage on your present house, even if you are not paying for it currently. It can either be rolled into your new loan or paid in cash at closing.
- Market Availability Is Limited
You can’t utilize Knock’s services if you don’t live in one of the cities where it operates. Currently, they are active in the following cities:
- Los Angeles
- Orange County
- Riverside/Palm Springs
- San Bernardino
- San Diego
- Santa Barbara
- Colorado Springs
- Fort Collins
- Fort Lauderdale
- West Palm Beach
- Athens/Clarke County
- Minneapolis-St. Paul
- Dallas-Fort Worth
- San Antonio
- Costs Can Stack Up
Knock’s convenience lets you borrow money for repairs, postpone payments on your second mortgage, and do other things. However, all of these expenses add up. Therefore, any funds advanced for repairs, mortgage payments, or real estate commissions must be repaid.
Knock may cost you more than a typical real estate agent for convenience. If your $400,000 property takes two months to sell, you’ll owe Knock $4,000 in mortgage payments, $5,000 in convenience fees, and whatever money you borrowed for repairs.
Knock Real Estate Customer Reviews
Knock Real Estate reviews have a 4.3 out of 5 rating on Trustpilot. Some Knock Real Estate reviews are conflicting in terms of customer service. The customer support of Knock Real Estate is rated as helpful by some Trustpilot reviews, while others do not.
✅ Knock Real Estate made the process of selling a home easier, delighted Ruth Swanson.
✅ Having Knock Real Estate handles her home sale was easy and efficient.
❌ They explained the sluggishness of Knock Real Estate and their lack of concern for customer satisfaction.
Is Knock Real Estate Trustworthy?
Knock is a legal company, similar to iBuyer, that provides house loans to buyers and sellers. Currently, the company has no accreditation from the Better Business Bureau. Knock has good evaluations, averaging 4.8/5.0 stars for an iBuyer-like firm.
Best Alternatives to Knock Real Estate
Knock is an easy alternative if you want simplicity when selling and purchasing a house. Here are some extra ideas to consider if you want to save money while getting the most out of your property:
🔥 BEST FLAT FEE MLS LISTING SERVICE
Why It’s #1: Houzeo has thousands of 5-star reviews. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.
Packages: Houzeo typically offers 4 Flat Fee MLS packages.
- Bronze Package – $299+: It is the best for selling a lot. Your listing gets syndicated to Zillow, Trulia, Realtor, Redfin, and more.
- Silver Package – $349+: This includes everything that home sellers typically look for.
- Gold Package – $399+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $999+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
- Near Nationwide Coverage: Houzeo covers 47 states + DC.
- No Listing Agent Commission: With Houzeo, you only pay a small flat fee to list on MLS and get access to all the Houzeo tech.
- 100% online: Easy listing, fast changes, online showings, and online offers.
- Max Exposure: Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other real estate sites.
- Fast Listing: Rush listing option gets you listed within a business day with Houzeo Concierge.
- Real Estate On the Go: Houzeo Mobile App mimics most functionality of the Houzeo web platform, including Offers and Showings.
- 5-Star Customer Service: Superb support that minimizes Houzeo complaints.
- No Hidden Fees: There are no Houzeo hidden fees.
» Is Houzeo Legit: Learn more about Houzeo.com’s locations and services.
Houzeo has 4.9 out of 5 stars on Google & Trustpilot.
» Houzeo Reviews: Check out what customers have to say about Houzeo.
Houzeo is available nationwide.
GOOD AGENT COVERAGE
HomeLight is an agent matching service, free for home sellers. They furnish details of the best real estate agents in your selected neighborhood for both full and limited service plans.
- Free Agent Matching: Depending on the agent, the traditional 5% – 6% commission still applies. But they offer all the services you will require during your sale.
Coverage: HomeLight has coverage in Atlanta, Austin, Boston, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Los Angeles, Miami, New York, Portland, San Diego, San Francisco, Sarasota, and Seattle, among other major U.S. cities.
👉 Our Take: Homelight offers decent agent-matching services. However, you may be matched with a listing agent who charges 3% commission, meaning zero savings for you.
» What is Homelight: Check this out to know more about them.
HomeLight has a network of thousands of successful sellers, best real estate agents, and brokers. They help to create tailored guides and resources in the process of selling a house.
- Good Agent Coverage: They have a good number of agents as per their coverage area.
- Estimators and Calculators: HomeLight offers home value estimator, best time to sell calculator, agent commissions calculator, and net proceeds calculator.
» How does Homelight Work? Check this out to know more about them and their procedure.
In our research, we came across some major drawbacks of HomeLight.
- Inconsistent Agent Quality: The agents they assign may not work at your convenience. Even the listing speed will be based on the agent selected.
- Off-Market Restriction: Registering on HomeLight will get you offers from agents instantly. Although the process is fast, only homes that are off-market are allowed.
» How much does HomeLight Cost? Check this out to find out if they are really affordable.
HomeLight has a rating of 4.45 out of 5 stars from 233 reviews on Sitejabber.
» HomeLight Reviews: Check out our reviews of HomeLight to make an informed decision.
🚩 HIDDEN FEE ALERT
Homecoin is a tech-centric, Flat-Fee MLS platform registered in San Diego, California and now offers its services in 9 other states. Homecoin lures home sellers with its “affordable” FSBO listing. They provide a clunky online dashboard that makes complex FSBO listing paperwork more difficult.
Package: Homecoin offers 1 Flat Fee MLS listing package.
- Basic Package – $95 + a la carte charges: This package includes a listing term of 12 months with 10 free listing changes. You get to upload the maximum number of photos. Additionally, you get free calls and email forwarding. Homecoin has inflated the rates of for-sale yard signs, a $49 sign is sold at $97.
🚩 You Should Know: Homecoin charges additional fees during the FSBO transaction, and these hidden fees range from $450 to $2,999.
👉 Our Take: Selling your home with Homecoin can be quite expensive as they charge a hefty amount for extra services.
» Homecoin Reviews: Is the $95 listing fee too good to be true?
- 100% online
- FSBO listing
- Extra charges for state disclosures
- Hidden fees
Homecoin has 5 out of 5 stars (99 total reviews) on Yelp.
Homecoin covers multiple states and offers the following services:
- Flat Fee MLS California: See our rankings of Flat Fee MLS Companies in California.
- Flat Fee MLS Florida: See our rankings of Flat Fee MLS Companies in Florida.
- Flat Fee MLS Georgia: See our rankings of Flat Fee MLS Companies in Georgia.
- Flat Fee MLS Michigan: See our rankings of Flat Fee MLS Companies in Michigan.
- Flat Fee MLS Missouri: See our rankings of Flat Fee MLS Companies in Missouri.
- Flat Fee MLS New York: See our rankings of Flat Fee MLS Companies in New York.
- Flat Fee MLS North Carolina: See our rankings of Flat Fee MLS Companies in North Carolina.
- Flat Fee MLS South Carolina: See our rankings of Flat Fee MLS Companies in South Carolina.
- Flat Fee MLS Tennessee: See our rankings of Flat Fee MLS Companies in Tennessee.
- Flat Fee MLS Virginia: See our rankings of Flat Fee MLS Companies in Virginia.
With these services, you can find the best listing agent to sell your house for top dollar or the best buyer’s agent to find the right home. However, you can save money on the listing commission and obtain a buyer’s refund.
Find the best real estate agent and save money with Houzeo by allowing agents to compete for you. Houzeo is a Flat Fee MLS service that helps home sellers and buyers locate the top real estate agents nearby. Houzeo lets you compare ratings, commission rates, recent sales, and more of the agents in your area.
Taking it all Together
Knock.com is an efficient way to organize house sales when sellers struggle with a tight timetable. Working with Knock is an easy alternative if you need to relocate swiftly and don’t want to wait for your present property to sell.
You’re purchasing in a competitive market and losing to all-cash bids. After selling your current home, you’re unlikely to find a house that meets your requirements. However, if you want the freedom to work with your chosen lender, you might not want to go this route.
Whether you want to deal with Knock or a traditional lender, you’ll need to locate a fantastic real estate agent. Thus, we recommend Houzeo for much better services.
In addition to offering all rates upfront, Houzeo is transparent. Houzeo offers MLS listing for as little as $199. There are several options available with Houzeo, including the virtual full-service package.
Frequently Asked Questions
1. Is there a catch to Knock?
Using Knock's services will cost you more. Origination fees are higher than those charged by most lenders, at 1.25%. Underwriting and processing fees apply as well. Currently, Knock is only available in around 20 cities.
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