A cottage industry of new services has developed around buying and selling homes. Now, you can even “trade in” your home. At least that’s the premise of Knock, a real estate startup that wants to make trading in homes as easy as it is for cars.
Knock, which launched in Atlanta, Georgia, in 2016, promises to save customers the hassle of making repairs, listing their home and opening it up for multiple showings.
What is a Knock Home Trade-In and how does it work?
A Knock Home Trade-in works like this: The service buys your next home for you in cash, which they say gets you the best price, and any “repair concessions” that may be needed.
Before that happens, you work with a Knock Local Licensed Expert to get pre-approved for the new home before making offers. This expert also represents you in the sale of your old home.
Here are 6 things to know about Knock
If you’re thinking about using Knock, or have used it in the past, here are some things to know so that you can get the most out of the service:
1. What markets does Knock operate in?
As of June 2019, Knock operates in five U.S. cities: In addition to Atlanta, there’s Charlotte, North Carolina; Dallas-Fort Worth, Texas; Phoenix, Arizona and Raleigh-Durham, North Carolina.
The listed cities generally don’t include adjacent suburbs but Knock does have plans to expand in the future.
2. Knock is also a home listing site
Like Zillow, Trulia and other sites, Knock also operates as a home-listing service. On Knock Deals, you can see the homes that Knock has listed in selected cities.
You can find home photos, neighborhood information as well as a map that shows other Knock homes and their listing price.
3. How much does Knock buy your home for?
Knock will typically buy your home at a 3% to 5% discount, according to the website. To sell your home, Knock charges a 6% commission, which is the typical rate for an agent.
The good thing is that you can move into your new house before your old one is listed.
4. How exactly does Knock sell your home?
You may be wondering how Knock can sell your home. Knock uses an array of online marketing strategies to sell your dwelling, including MLS, Zillow, Trulia, Google, Facebook, and old-fashioned yard-signs, among other ways.
5. What costs are the homeowner’s responsibility?
You’ll be responsible for paying for a home inspection before Knock purchases a house for you. Typically, you can pay for that — which should cost around $500 — at closing.
6. What types of homes does Knock buy & sell?
Knock specializes in homes that have a clear title and are owner-occupied. They like homes that are worth at least $150,000 or combined valuation of $350,000-plus for your old and new home.
Knock does not deal with homes that are in age-restricted communities, distressed sales or those with foundation/structural problems.
Conclusion
Knock is one of many services that aim to make home buying and selling easier. Before you go this route, read some reviews about the process as well as feedback on Knock agents.
No matter what service you use, money expert Clark Howard says would-be home buyers usually make crucial mistakes early in the process — but you can be the exception. Here are 10 things to know before buying a home.
