The stars have to align just right when you’re buying a home while selling your old one.
It was tough enough when dealing with both ends of the housing transaction. It’s even tougher when taking into account the competitive housing market and concerns about social distancing.
Knock, a New York-based home sales company, recognized the need for a hassle-free process and expanded its Home Swap service into Dallas-Fort Worth recently, making its home-selling tool available in the state’s four largest markets, including Houston, Austin, and San Antonio.
iBuyers purchased 1 percent of homes sold in 2019 across more than 200 U.S. metro areas, according to a Redfin report. Last month, however, a Redfin analysis found that only 880 homes were sold in the second quarter, or 0.1 percent of homes that sold across more than 400 metro areas.
Knock joined Offerpad, Opendoor, Zillow Offers, RedfinNow, and others in the growing iBuyer system that uses technology and artificial intelligence to make immediate offers on properties. Last week, Opendoor filed an initial public offering and Zillow announced its new service.
Home Swap lets homeowners gain pre-approval for a competitively priced mortgage from Knock to buy their new home, avoiding living through prep work and showings while still selling their house for the maximum price, according to a news release by the New York-based company.
Knock, which was launched in 2015, came up with Home Swap this year.
“We are taking the stress out of what is an overwhelming and complicated process, even when everything goes according to plan,” says Sean Black, Knock co-founder and CEO.
Homeowners work with a local Knock certified agent during the transaction. The Home Swap program provides an interest-free bridge loan to cover the down payment on the new home in addition to $25,000 for home prep and repairs on the old house, according to Knock.
In its news release, Knock says it plans to expand the program to at least 11 markets by year-end and operate in at least 21 markets by the end of 2021.
Knock partnered with Berkshire Hathaway HomeServices Premier Properties and RE/MAX Fine Properties on the program’s expansion.
“Safety is top of mind in today’s environment, and the Home Swap gives people a safe way to sell their home without having to sell to an iBuyer for a loss,” says Nimesh Patel, RE/MAX Fine Properties, broker-owner.