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Revolutionizing Home Buying and Selling: The Knock Platform

Knock: The Innovative Home Swap Platform

Moving to a new house is often a stressful and time-consuming task. With Knock, a real estate platform that offers a unique home swap option, homeowners can now sell their old homes and buy new ones in a single transaction.

This article provides a comprehensive guide on everything you need to know about Knock, its operations, and how to successfully use the platform to buy or sell your home. What is Knock, and how does it work?

Knock is a home swap platform that streamlines the process of buying and selling homes. Instead of selling your old home first, moving out, searching for a new house, and going through the process of financing, Knock simplifies everything by orchestrating both transactions in one package.

A homeowner can leverage this opportunity to sell their old residence and buy a new one with just a click of a button. Sean Black and Jamie Glenn founded the company in 2015 as a response to the growing demand for innovative real estate companies.

Knock rose to prominence in 2019 when it secured $400 million in funding, attracting the attention of various industry players like Trulia. While several companies aimed to disrupt the US real estate space, Knock stands out through its distinct service, the Home Swap program.

How does Knock work?

Home Swap Process

To participate in the Home Swap process, you first need to get pre-approved by filling out a questionnaire. If you meet the set criteria, Knock will underwrite a home loan for you based on the value of your old home.

The platform reviews your property and considers other factors such as its condition and location to provide you with qualified offers. The service area for Knock is in the major US metropolitan areas.

The program is available for single-family residential homes, owner-occupied, and not distressed with critical structural issues such as foundation or water damage. Knock ensures every certified real estate agent assisting you sells one mortgage at a time.

Home-Selling Side

Knock offers up to $25,000 in home-prep costs to get your old home ready for sale. You can use this money to cover costs like repairs, painting, and cleaning up.

With Knock’s assistance, listing your house will be faster, and you’ll get qualified offers within two weeks of signing up. Unlike other home sale options, Knock’s seller can pay back any costs that Knock may have covered during the process.

The Home Swap program is currently available in 11 cities and counting. You can find out more information and browse available homes on the Knock website or its local offices.

In conclusion, Knock has revolutionized the home buying and selling process by providing an innovative solution to a common problem. With their Home Swap program, it is easier than ever for homeowners to sell their old homes and buy new ones simultaneously, reducing the hassle and stress that comes with moving.

While Knock’s services have some standard rates and convenience fees, the ease of using their platform is worth it for many homeowners. It is no wonder that the company has attracted the attention of venture capitalists and even entry into the stock market.

Knock: A short history and how it makes money

Knock is a real estate technology startup that has revolutionized the process of home buying and selling in the US. The company is built on a unique idea of Home Swap, where homeowners can sell and buy homes at the same time, without having to move twice.

The company has generated a lot of buzz in the last few years due to its innovative approach to real estate. In this article, we will explore the history of Knock and how it has managed to create a sustainable revenue model.

Founders Background

Sean Black and Jamie Glenn, the founders of Knock, both have a rich background in the technology industry. Before founding Knock, Sean Black was the CEO of Trulia, a popular real estate website, and held executive positions at Yahoo and SalesCrunch.

Jamie Glenn was the founder of Uversity, a predictive analytics EdTech company, and served as the VP of Sales at both ClearSlide and Jobvite.

They both came up with the idea of Knock when they experienced the hassle of moving to a new home and realized that there had to be a better way to buy and sell homes.

iBuying Industry Emergence

The emergence of iBuying startups has disrupted the traditional methods of buying and selling homes. These startups have become popular because they use algorithms to analyze terabytes of data to determine cash offers that can allow for faster home flipping.

Knock has found a unique space in this market with its Home Swap program that has quickly gained popularity.

In 2015, Sean Black and Jamie Glenn established Knockaway Inc.

and raised $2.5 million in seed funding.

They progressed to $15 million in Series A funding raised through RRE Ventures.

In Series B, the company secured $400 million led by Goldman Sachs and retired an outstanding $200 million in debt. With 75 market coverage and over 125 employees, the Company has continued to grow.

In February 2021, the company went public and has shown steady growth ever since. How does Knock make money?

Convenience Fees

Knock charges a convenience fee of 1.25% of the home’s purchase price from the buyer during the Home Swap transaction. This fee covers the additional services provided, such as moving assistance and home-prep costs.

Knock also charges a 3% commission fee for the sale of the homeowner’s old home. With the convenience fee charged, Knock makes a decent profit from each transaction processed through the Home Swap program.

Flipping Homes

Knock also engages in home flipping, which brings in additional revenue for the company. The company uses publicly available databases, historic sales data, and other enriched data to identify undervalued single-family homes in mid-size markets.

Knock then employs human experts, real estate agents, and contractors to prepare the house for sale. Once it is ready, Knock purchases the property for a discounted price and sells it for a higher sales price, generating revenue for the company.

This business model is still in its early stages but has shown tremendous potential for Knock to make significant profits. In conclusion, Knock has created a unique approach to home buying and selling that has helped streamline the process for homeowners.

The company’s Home Swap program has gained rapid popularity in the US real estate market and has led to a steady growth in revenues. Knock charges a convenience fee for the Home Swap transaction and engages in flipping homes, making it an all-around profitable company.

The founders’ technology backgrounds and the company’s innovative approach to the industry have seen it through a successful IPO and sustained growth. Knock Funding, Valuation & Revenue

Since its inception in 2015, Knock has received several rounds of funding, attracting hundreds of millions of dollars from various investors.

In this article, we will explore the different funding rounds, the company’s current valuation, and undisclosed revenue figures.

Funding Rounds

According to Crunchbase, Knock has raised $564.5M in equity funding and $803.5M in debt capital funding. The company’s first seed funding in 2016 raised $2.5M in seed funding to start the company.

In Series A funding, Knock raised $32.5M, led by RRE Ventures. In Series B funding, underwritten by Goldman Sachs, Knock secured $400M with another $200M in debt funding.

The investors in Knock include Long Arc Capital, Foundry Group, Camber Creek, RRE Ventures, Redpoint, and Goldman Sachs, among others.

Valuation and Revenue Figures

As a private company, specifics regarding Knock’s valuation and revenue figures have been undisclosed. However, in 2019, the company was speculated to be valued at approximately $500M.

In 2020, the company was speculatively valued at $2B in light of a potential IPO.

However, in July 2021, the company announced that it had shelved their plans for an IPO.

In 2020, Knock generated an estimated $330M in revenue from home-selling fees and the home-flipping business model. However, according to Knock’s executives, the exact revenue figure has never been disclosed.

Overall, the funding raised by Knock has enabled the company to grow to great heights in a relatively short period. With a potential valuation of $2B, the company has managed to achieve tremendous success in the US real estate market.

Knock has continued to attract an impressive list of investors who believe in the company’s innovative business model. In conclusion, Knock’s Home Swap program has revolutionized the US real estate industry by streamlining the process of buying and selling homes for homeowners.

The company has raised significant funding from various investors, including Goldman Sachs, and has been valued at $2 billion. While details on the company’s revenue remain undisclosed, with the convenience fees and home flipping business model, Knock has shown steady profitability.

Knock’s success shows the potential for innovation in the real estate industry and the importance of creating tech solutions to address persistent problems. Homeownership remains a dream for many, and solutions like the Home Swap program can help make that dream a reality.

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