Knock Home Swap: buy a new home before you sell your old one 

Knock is a mortgage lender. It offers a different approach to the way people buy and sell their homes. Since its 2015 launch, the Knock Home Swap program helps home sellers who are also home buyers. The company allows homeowners to purchase a new home before selling the old one. Knock Home Swap is available in 14 states with plans to expand nationwide. 

The Knock Home Swap works with real estate agents across the country. First, Knock clients get pre-approved for a mortgage. They can also receive up to $250,000 interest-free bridge loan to cover the down payment for a new house. Next, Knock clients put an offer on a home. Once the deal is closed, they can move in right away. After people move in and start paying a mortgage on a new home, Knock will pay the mortgage on their old home for up to 6 months. Moreover, the program will also provide an interest-free loan of up to $25,000 to make repairs on an old house and prepare it for sale. Finally, when clients sell their old home, they pay back the loan provided by Knock. 

Knock Home Swap service charges a 1,25% convenience fee and a $1,450 administrative fee. Knock commission fee does not include real estate agent commission and closing costs. Many home sellers are worried they will not be able to purchase a new home after they make a sale. The Home Swap program solves this problem. However, based on the reviews, some customers say that they had to pay more money in fees because their agent did not explain the Home Swap business model correctly. Others say that they were not satisfied with the quality of home repairs. Overall, Knock has a 4.8 rating, based on over 700 reviews.

Resources:

“Knock Home Swap: A Timely Solution For Home Sellers Who Are Also Home Buyers To Bid Competitively,” by Ellen Paris (Forbes, 2020)

“As Competition To Disrupt Home Sales Heats Up, Startup Knock Plans Rollout To 10 New Cities,” by Amy Feldman (Forbes, 2018)

“The smart way to buy before you sell,” (Knock)

“Agents,” (Knock)

“I am buying and selling,” (Knock)

“Knock Home Swap: Reviews, Fees, and How It Works,” by Thomas O'Shaughnessy (Real estate witch, 2021)

“Knock Homes,” (Zillow reviews)

“Knock Home Swap™ Expands to Nashville and the Twin Cities; Now Available in 27 Markets Nationwide,” provided by Knock (PR News Wire, 2021)

“Cities,” (Knock)