🔑 Key takeaways
- Knock.com is a lender that can approve you for new mortgage before selling your old home through its signature program, Knock Home Swap
- Knock also offers an interest-free Home Swap loan you can use for a down payment, repairs, and overlapping mortgage payments
- Knock reviews are mostly positive, with sellers praising Knock Home Swap’s flexibility and convenience
If you’re a homeowner planning to relocate, you 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 to without selling your old home.
For many homeowners, both options are inconvenient and complicated.
Knock.com is a lender that aims to solve this problem with its signature service: a home trade-in service called Knock Home Swap.
This innovative program offers two types of financing options:
- Approval for a new home loan before your old one sells
- An interest-free bridge loan that covers tricky costs, such as a down payment and overlapping mortgage costs
Knock Home Swap makes coordinating your home sale and purchase much less of a hassle — but you’ll still need a great real estate agent to help you find your dream home, attract buyers to your listing, and get the best possible deals on both transactions.
If you’re looking for an agent, our friends at Clever can help! Clever’s free service matches you with top-performing local realtors near you. You’ll choose an agent from a leading brokerage and save thousands, thanks to Clever’s pre-negotiated listing fees of just $3,000 or 1%.
What is Knock.com?
Knock is a nontraditional lender that offers a unique service to homeowners who are buying their next home. With Knock Home Swap, you can get approved for a mortgage before your old home sells — which most lenders won’t do, due to limits on borrowers’ debt-to-income ratios.
Knock can do this because it offers homeowners a backup offer. If your home doesn’t sell on the open market, there’s still a guarantee that you can sell it directly to Knock.
This certainty allows buyers to make a competitive offer on a new home. In most cases, buyers agree to purchase a new home only if their old home sells first. But this is trickier than it sounds, because lots of details (including your old home sale and financing) will have to line up perfectly. That’s why Knock’s non-contingent, cash-like offers stand out to sellers — and why it’s much more likely to get accepted.
Knock also offers financial assistance to help homeowners cover the many costs of moving. If approved, you can receive an interest-free bridge loan that can cover:
- The down payment on a new home
- Mortgage payments on your old home until it sells
- Up to $25,000 toward repairs on your old home
Once you move into your new home, Knock can handle any repairs and pay the mortgage on your old property until it sells.
At the end of the process, Knock will deduct its fees — including the balance of your bridge loan — from the proceeds of your home sale.
How Knock Home Swap works
Other than approving your mortgage before your old home sells, Knock Home Swap’s process is very similar to a typical home sale:
- Apply online. Knock’s two-step evaluation usually takes around fourdays. If you’re eligible, you’ll be pre-approved for a home loan to cover the cost of your new home.
- 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 six months.
- 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 $25,000 for repairs, which must be completed within 45 days.
- 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.
- Settle the bill. Once your home sells, you’ll pay back Knock’s bridge loan, overlapping mortgage payments, and Knock fees.
Note: If you accept a Home Swap bridge loan, Knock will place a lien against your property — so you must repay it in full when your old home sells.
Since Knock.com encourages sellers to list on the open market, you’ll still need a great real estate agent on your side.
Our friends at Clever can help you meet real estate agents near you, from trusted national brokerages including Keller Williams, Coldwell Banker, and RE/MAX. With Clever’s pre-negotiated listing fees, you’ll get full service while saving an average of $9,600!
If you plan to buy a new home, you may be eligible to earn up to 0.5% in Clever Cash Back at closing.
What if your home doesn’t sell on the open market?
If your home doesn’t sell on the open market after six months, you’ll have the option of accepting Knock’s backup offer (worth 80-85% of fair market value).
While Knock’s backup offer provides peace of mind (and allows the company to approve your new mortgage earlier), finding a buyer on the open market is by far the better option.
Not only will you have the opportunity to receive offers over your listing price, but you’ll also be able to negotiate selling costs including concessions, closing costs, and realtor commissions.
Does Knock.com buy homes?
In addition to Knock Home Swap, the company also offers a program called Knock Nest.
With Knock Nest, you can tap into your old home’s equity by selling it to Knock.com. You’ll receive a cash payment you can use to pay off your mortgage and access your home’s equity, then pay market-rate rent to stay in your old home throughout your home search.
If you change your mind about moving, you can buy your home back from Knock at a predetermined price.
How much are Knock Home Swap fees?
Knock charges a 1.25% convenience fee, plus a $1,450 administrative fee, for its Home Swap Service. You’ll also have to pay realtor commission and closing costs, just as you would with any other home purchase.
Knock fees are based on your new home — so let’s say you plan to purchase a $400,000 property. In this example, Knock fees would total $6,450, including a $5,000 convenience fee, before closing costs.
Though Knock frames its service fee as the equivalent of an origination fee you’d pay to obtain a mortgage, most lenders charge just 0.5% to 1% of the loan amount. (For example, if your loan is worth $300,000, you’d pay $3,750 with Knock versus just $1,500 to $3,000 with another lender.) It’s even possible to shop around and avoid origination fees entirely — but not with Knock.
Still, if you decide Knock’s convenience is worth it, a low commission real estate agent can help you offset the cost. Our friends at Clever have pre-negotiated low listing fees of just $3,000 or 1% with top-rated real estate agents near you — helping you save thousands while still getting incredible service.
Your Clever agent can also help you find a new home to purchase — and depending on your location, you may be eligible for up to 0.5% Clever Cash Back at closing.
Knock Home Swap reviews
Overall, Knock Home Swap reviews praise the program’s convenience, customer service, and transparency. Additionally, customers report that Knock’s bridge loans helped them stand out in competitive markets, thanks to the ability to make cash-like, non-contingent offers.
In some cases, Knock’s customer service is so strong that it’s even won over customers who were initially skeptical.
For another customer, Knock Home Swap made a long distance move comparatively stress-free — particularly because its bridge loan had zero interest.
Similarly, another customer found Knock Home Swap seamless and easy from start to finish.
In fact, the convenience of Knock’s bridge loan was so valuable that some reviewers felt it entirely justified Knock’s convenience fee.
Though most Knock.com reviews are positive, some sellers had regrets about working with the company instead of a traditional lender.
For example, confusion over Knock’s business model left one customer in a financial bind.
Other customers who purchase homes from Knock have been disappointed in the quality of repairs.
Ultimately, your experience may depend on the Knock representatives, agents, and third-party vendors who work on your transaction.
If you’re looking for an incredible agent near you, our friends at Clever can help! Clever sellers have saved more than $70 million on realtor commission, thanks to pre-negotiated listing fees of just $3,000 or 1%. Clever’s partner agents are vetted and come from top-rated brokerages, so you’ll pay a fraction of the cost without sacrificing on customer service.
Where is Knock Home Swap available?
So far, Knock is available in around 50 metro areas across ten U.S. states.
|California||Bakersfield, Los Angeles, Orange County, Riverside/Palm Springs, San Bernardino, San Diego, Santa Barbara, Ventura|
|Colorado||Colorado Springs, Denver, Boulder, Ft. Collins, Greeley|
|Florida||Bradenton, Cape Coral/Fort Myers, Deltona/Daytona Beach/Ormond Beach, Fort Lauderdale, Jacksonville, Lakeland/Winter Haven, Miami, Naples/Marco Island, North Port/Sarasota, Orlando, Palm Bay/Melbourne/Titusville, Port St. Lucie, Punta Gorda, Sebastian/Vero Beach, Tampa, West Palm Beach|
|Georgia||Atlanta, Athens/Clarke County, Gainesville, Dalton, Rome|
|North Carolina||Charlotte, Raleigh-Durham, Burlington, Hickory|
|South Carolina||Charleston, Columbia, Greenville, Spartanburg|
|Texas||Austin, Dallas-Fort Worth, Houston, San Antonio|
» Not eligible for Knock.com? Read on to learn about other options!
Top Knock.com Alternatives
Knock.com vs. Orchard
Knock isn’t the only company that offers a home trade-in service. Orchard (formerly Perch) has a Move First service that’s very similar to Knock Home Swap.
However, Orchard fees are structured differently — and are harder to predict up front. You’ll pay:
- A 6% service fee, based on the cost of your new home
- 1-3% closing costs on your old home, plus 2-5% closing costs on your new home
- Utilities, taxes, and mortgage payments on your new home
- Variable repair costs for your old home
By contrast, Knock’s fees are relatively straightforward and similar to a traditional real estate transaction.
Buy a new home before you sell you old oneFull Review
- 6% service fee
- Backup offer from Orchard
- Full listing service
Orchard makes it easier to finance the purchase of a new home before you sell your old one, but they’ll only purchase their home directly from you if it doesn’t sell on the open market after 30 days. If you want a fast, predictable sale, a traditional iBuyer is still a better option.
- Leverage the equity in your current home to buy a new home
- Avoid paying two mortgages at once
- Sell directly to Orchard if you can’t sell on the open market
- Only available to customers in four states
- High fees — 6% service fee plus closing costs and repayment or old mortgage
Orchard is currently available to home buyers and sellers in 11 metro areas across five states: CO, GA, NC, TX, and VA.
Knock.com vs. iBuyers
Knock.com is very different from a typical company that buys houses. For example, iBuyers make cash offers on homes and offer flexible closing timelines that range from one week to several months.
Below, we broke down the key differences between Knock Home Swap and leading iBuyers.
|Issue||Knock Home Swap||iBuyers|
|🏡 Selling your home||List on the open market, with a backup offer after six months||Get an instant cash offer|
|💰 Sale price||Fair market value (or more!)||Slightly less than fair market value|
|🚚 Buying a home||Get approved for a new mortgage before your old home sells||Not involved in new home purchase|
|🤝 Real estate agent||Work with real estate agent who negotiates on your behalf||No support from real estate agent|
|💵 Mortgage payments||Interest free loan for overlapping mortgage payments, repairs, and other costs||Line up your home sale and purchase to avoid overlapping costs|
While this can help you line up two sales, you’ll have to navigate the sale 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 and lack of room for negotiation.
By contrast, Knock Home Swap allows you to get the maximum benefit from your home sale. You’ll be able to make a competitive offer on a new home, then work with a real estate agent to get the best possible deal.
🔎 COMPARE: We Ranked the Top 6 iBuyer Companies
Should you sell your home to Knock.com?
|✅ Pros||❌ Cons|
|Increase the odds of landing your dream home with a competitive, cash-like offer||No opportunity to shop around for the best mortgage rates|
|Get an interest-free loan for overlapping mortgage payments and repairs||Backup offers are only worth 80-85% of your home's fair market value|
|Move first, then prepare and list your home on the open market||Home Swap loans place a lien against your old home and must be repaid in full for your sale to be final|
Overall, Knock.com reviews suggest the service is a convenient solution for the tricky timeline home sellers face while coordinating a new home sale.
Working with Knock may be a good option if:
- You’re hoping to move quickly, and you don’t want to wait to sell your current home.
- You’re buying in a competitive market and losing out to all-cash offers
- You have very particular needs for a new home and may not be able to find one quickly after your current home sells.
Whether you decide to work with Knock or get your mortgage through a traditional lender, you’ll need to find a great real estate agent.
Our friends at Clever offer a free, zero-obligation service that matches you with top-rated real estate agents near you. If you decide to work with a Clever agent, you’ll pay just $3,000 or 1% in listing fees — helping you get amazing service while saving thousands on commission!
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.
The Top 6 iBuyer Companies, Ranked: Interested in selling your home to an iBuyer? We ranked Opendoor, Zillow Offers, and other leading iBuyers to help you compare.
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.
Are Knock Home Swap reviews mostly positive or negative?
Knock Home Swap reviews skew positive, with customers rating the service an average 4.8/5 stars on Zillow. We recommend reading reviews from Knock customers — and also choosing a great real estate agent to help with your sale. Compare top-rated low commission real estate companies and save!
How much does Knock Home Swap charge?
Knock Home Swap fees include a 1.25% convenience fee and a $1,450 administrative fee, plus the usual closing costs and real estate commission you'd pay in a typical sale. Learn more about realtor commissions (plus how to save thousands on fees).