Knock Real Estate Review: How To Buy Before You Sell with Knock

• 

  Written by Shannon Whyte

• 

  Edited by Katy Byrom

Should you use Knock? | How much does it pay? | Knock’s fees | Knock reviews | How it works | Knock vs. competitors | Purchase criteria | Locations | FAQs

If you’re a homeowner planning to relocate, you usually have two choices. You could sell your old home first, then hope to quickly buy and move into a new home. Or you could buy a new home first — if you can afford the down payment and closing costs without selling your old house first.

Knock’s innovative Bridge Loan provides a solution to the complicated process of buying and selling a house at the same time by offering two types of financing:

• An interest-free bridge loan that covers transaction-related expenses, such as a down payment on a new home, repairs to the home you’re selling, and overlapping mortgage costs
• Approval for a new home loan before your old one sells, backed by Knock’s guaranteed purchase offer

With a guaranteed home sale and bridge loan to cover your down payment, you can make a more competitive offer on a new home and move in right away. Knock will take over your previous mortgage while you work with an agent to attract buyers to your listing and negotiate the best offer.

Knock at a glance

Should you use Knock?

Knock’s Bridge Loan is designed specifically for homeowners who are buying and selling at the same time.

Knock may be a particularly good solution if you:

• Can’t afford a new home or don’t qualify for financing without selling your existing home first
• Are buying in a competitive market where you need to make a strong offer
• Would benefit from extra funds to fix up your current home before listing
• Want to avoid living in a home during repairs or showings

Knock’s innovative loan lets your borrow up to $500,000 against your current home’s equity before you sell. That way, you can make a non-contingent offer on a new home — making it far more attractive to home sellers, since your ability to close doesn’t depend on selling your old house.

Knock’s Bridge Loan can also be used to cover: 

• A down payment of up to 30% on a new home
• An interest rate buy-down on your new mortgage
• Up to $35,000 to get your current home ready to list 
• Mortgage payments on your current home until it sells
• Closing costs

Knock’s loan is interest-free for up to 6 months, giving you time to list and sell your current home. Knock also provides a guaranteed purchase offer — worth about 80–85% of your home’s estimated fair market value — in case you don’t find a buyer within the 6-month listing period.

While Knock offers some compelling benefits for home sellers, it’s not for everyone.

For one, Knock’s Bridge Loan comes with a price tag of 2.25% of your home’s estimated list price, plus an estimated $1,850 in extra closing costs. And if you’re selling a house that needs extensive repairs or selling as is, your home may not be eligible.

Exploring your options before signing with Knock will ensure you’re making an informed decision about the benefits and trade-offs.

How much does Knock’s backup offer pay?

Knock reportedly will buy your home for about 80–85% of its estimated listing price if it doesn’t sell after 6 months.¹ You’ll receive your guaranteed offer price from Knock early in the process, so you will know what to expect before proceeding too far.

If you don’t end up selling on the open market within 6 months, you may end up needing to sell to Knock for less than market value AND pay interest on your bridge loan out of the proceeds. However, Knock claims that most of its customers sell to someone other than Knock, and 92% of customers’ homes are on the market for less than 90 days.²

We recommend that home sellers determine the fair market value of their home and get competing offers before signing with Knock. Other cash home-buying companies may offer lower fees and a similarly flexible closing timeline.

Knock fees and other costs

Knock’s Bridge Loan program comes with a fixed program fee of 2.25% of your property’s estimated list price, which it will quote you up front. When you sell, you’ll also pay an extra $1,850 in closing costs — though the exact amount may vary based on your loan amount.

Knock’s Bridge Loan will be interest-free for 180 days (or 6 months). You’ll settle up with Knock once you receive the proceeds from your home sale.

Unlike competitors such as Orchard, Knock lets you work with your own agent to list your home. So you can potentially save on realtor fees by finding a low commission broker who provides full service for a more competitive commission.

Knock vs. competitors

Knock’s main competitors include other buy-before-you-sell services like Orchard and iBuyers like Opendoor and Offerpad.

Like Knock, Orchard offers an equity advance on your current home to cover the down payment on a new one, letting you move in right away while it lists and sells your home. Orchard also provides interest-free funding to make repairs and a guaranteed backup offer if your home doesn’t sell within 120 days.

However, Orchard’s fees are structured differently — and you must use Orchard’s in-house team of agents to list your home.

iBuyers like Opendoor and Offerpad offer similarly flexible closing timelines that can help you line up your home sale with a new home purchase. However, you’ll have to navigate the transaction on your own, and you’re very unlikely to earn as much money as you might on the open market. You’ll also have to contend with iBuyers’ pricey fees (often 5% or more) and lack of room for negotiation.

By contrast, Knock allows you to get the maximum profit from your home sale by fronting you up to $35,000 to make upgrades before you sell and letting you work with a real estate agent of your choosing.

Finally, a ‘we buy houses’ company may be a better fit for homes in poor condition or a property you need to sell fast.

Cash offer networks like Clever Offers can help compare offers from multiple sources, potentially getting you a more competitive price for your home.

These highly rated competitors may provide more competitive offers or compelling perks, depending on your situation.

» MORE: Want to find more cash buyers near you? Check out our guide to the best companies that buy houses for cash. 

Knock vs. a realtor

Whether you sign with Knock or with a traditional listing agent, you’ll still need to pay real estate commission fees.

By working with Knock, you WILL incur additional fees, but you’ll also get a guaranteed purchase after 6 months — you won’t get that offer from a realtor. The backup offer will be below fair market value, though.

Knock allows you to work with any agent you like and encourages customers to sell on the open market.

So if you want to avoid — or offset — Knock’s additional fees, you can find a real estate agent who specializes in helping homeowners buy and sell at the same time. You can also work with a reputable discount broker to save even more on listing fees without sacrificing service or agent quality.

Knock reviews: What customers have to say

Knock reviews are mostly positive, with an average customer rating of 4.8/5 from 834 online reviews.

Knock customer reviews praise the program’s convenience, customer service, and transparency. Additionally, customers report that Knock’s loans helped them stand out in competitive markets, thanks to the ability to make cash-like, non-contingent offers.

However, a few reviews cite closing delays, as well as inaccurate home valuations.

Here are some of the common themes we see from home sellers.

✅ Convenient, stress-free selling and buying process

Knock strives to provide a transparent, easy-to-use process, so their customers have a stress-free experience.

Reviewers often mentioned the ease and convenience of the Knock program and having a guaranteed purchase if they don’t sell on the open market, which led to peace of mind throughout the process.

“As a single mother, I can’t imagine trying to sell my house without having a new one locked down, so the home swap program was essential for me. Having the peace of mind that regardless of what happens, there’s a guaranteed offer on my old house that will cover my loans has truly made the home buying experience less stressful.”

— Veronica C., February 2023, Zillow

✅ Good communication throughout the process

Many customers highlighted the high quality of communication and helpfulness of Knock’s customer service, representatives, and loan officers. People also felt it was easy to contact members of Knock’s team.

“We were initially skeptical about the idea of a bridge loan to help us purchase our new home prior to selling the old home. We were very pleasantly surprised by Knock and the person we worked with. She was quick to reply and very knowledgeable and allayed our initial fears. The process was very smooth throughout the transaction, and she was always available to answer our questions.”

— Christine W., January 2024, Zillow

✅ Responsive, knowledgeable customer service and representatives

Many reviewers spoke highly of Knock’s representatives, loan officers, and customer service. Knock’s team members are frequently described as polite, professional, experienced, and responsive — often going beyond expectations of service.

“The Knock team is amazing! Our representative went above and beyond to help secure financing for a new house when the old house didn’t sell in time. The entire process was smooth and the team was great to work with. Highly recommend!”

— Athena D., May 2024, Trustpilot

“Our loan officer was exceptional in her service and knowledge! She always responded promptly to our questions and was aware of the entire process.”

— Jill N., February 2024, Zillow

❌ Confusing paperwork and closing delays

While most reviewers reported how easy Knock’s process is to use, a few reviewers experienced delays due to the complexity of Knock’s process.

“Knock’s total concept was perfect for us. I knew we could never sell our old home with us still living in it, and we couldn’t afford to pay two mortgages at the same time. However, the overall process was frustrating. The list of documents required was constantly changing. They needed supporting documents for our supporting documents ad infinitum. It ultimately delayed our closing. Our personal loan processor was slow to return phone calls and sometimes never responded. Also, expect to pay for the convenience of the bridge loan — our interest was a good one percentage point higher than traditional mortgage rates.”

— Brian, December 2022, Zillow

❌ Dissatisfaction with home valuation

A few reviewers felt Knock overvalued their home, which ultimately led to missing out on potential buyers.

“Before we signed a contract, [Knock] told me that the value of my house was $370,000 and that they have a proprietary algorithm that they use to determine an adequate price of the property. They did not send a professional appraiser. … We bought the new house with them, but things turned bad when we listed the house after we bought the new house for sale. We listed the house for $377K. Our realtor agent did an independent appraisal that came in at $340K. When we had our first offer for $377K, the FHA bank sent an appraiser that came back to a low $325K. I was furious with Knock Lending. … The FHA appraisal stopped the opportunity for selling the house to any FHA buyer for the next 6 months, so we lost the possibility to sell to the bulk of potential buyers.”

— Radeberger U., March 2024, Trustpilot

How does Knock work?

1. Apply online. Knock’s two-step evaluation usually takes around four days. If you’re eligible, you’ll be pre-approved for a home loan to cover the cost of your new home. 
2. Buy a new home. With Knock’s pre-approval, you’ll make a competitive, non-contingent offer on a new home. After you move in, Knock will pay the mortgage on your old home for up to 6 months. Note: Knock will place a lien against your property — so you must repay it in full when your old home sells.
3. Prepare your old home for listing. Work with Knock and your real estate agent to get your home market-ready by completing repairs and upgrades yourself, or using Knock’s network of contractors. Knock provides an interest-free loan of up to $35,000 for repairs, which must be completed within 45 days.
4. List and sell your old home. You can list your home for sale after you’ve relocated, so it’s empty and available for showings any time. 
5. Settle the bill. Once your home sells, you’ll pay back Knock’s Bridge Loan, overlapping mortgage payments, and fees. The loan amount is interest-free for the first 6 months and can be used toward the program fees.

What kinds of homes does Knock buy?

Knock buys accepts most single-family homes, including townhomes and some condos.

However, Knock has more stringent eligibility requirements than many cash buyer companies.

Knock might deem your home INELIGIBLE if it has:

• Significant water or foundation damage
• Unpermitted additions
• No recent similar sales data in your area

Knock also typically WILL NOT ACCEPT these home types:

• Non-warrantable condos
• Multi-family properties
• Distressed or bank-owned homes
• Manufactured or mobile homes
• Deed-restricted properties

Where is Knock available?

Knock currently serves customers in 75 markets across 20 states, including: AL, AZ, CA, CO, FL, GA, IL, KY, MD, MI, MN, NJ, NC, OH, OR, PA, SC, TN, WA, WI, and Washington, DC.

If you live in one of Knock’s service areas, you can apply for a loan directly at knock.com.

Frequently asked questions

Recommended reading

What Companies Offer the Lowest Real Estate Commission Fees? Plenty of companies promise to help you save on commission — but with some, you’ll sacrifice on customer service. Our in-depth research found the best low commission companies on the market.

Top iBuyer Companies: Interested in selling your home to an iBuyer? Read our guide to compare the leading iBuyers.

We Buy Ugly Houses: The Good, the Bad, and the Ugly: You’ve seen their signs on the side of the road, or nailed to telephone poles. But how much do you really know about “We Buy Ugly Houses”? This guide details everything you might want to know about how they operate, and why you should (or shouldn’t) use them.

About our reviews

Our company reviews are powered by hundreds of hours of research. To evaluate and rank cash home-buying companies, we analyzed thousands of customer reviews, secret-shopped each company, and looked to publicly available data for indicators of offer quality, customer service, fees vs. value provided, trustworthiness, and more. Whenever possible, we also talked to customers, company reps, and industry professionals (such as real estate agents) who’ve had direct experience working with the brand.

1. Trustpilot, ‘Radeberger Urkell – Reviews’ Mar. 11, 2024, https://www.trustpilot.com/users/65edf983c64a54001253e2e2 ↩︎
2. Knock, ‘Knock FAQs: Answer to Common Questions’, https://www.knock.com/faq ↩︎