Knock vs. Opendoor: Which Is Better?

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  Written by Michael Warford

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  Edited by Jessica Johansen

Written by Michael Warford

Michael Warford is a content writer at Clever Real Estate. He covers the latest trends and technologies in real estate, with a focus on consumer advocacy.

Edited by Jessica Johansen

Jessica Johansen is a Content Editor for Real Estate Witch and its sister publications in the Clever Real Estate family of brands. She specializes in editing articles on real estate commission rates, selling without a realtor, and foreclosed homes.

Which company is better? | How they work | Offers and fees | Customer reviews | Availability | Alternatives

Knock and Opendoor are real estate companies that offer different solutions for home buyers and sellers. Knock is a home trade-in service, which makes it possible for you to buy a new home before selling your old one. Opendoor is an iBuyer that makes instant cash offers on homes.

Knock could be the better option if you need to time your home sale with a new home purchase. This service can help you avoid the stress of coordinating timelines yourself or showing your home while trying to move. Knock is also a good option if you want to try selling on the market but still have the security of a backup cash offer.

Opendoor may be a better fit if you value a hassle-free selling process with the ability to choose your own closing date, but you’ll usually get a lower sale price than you would on the open market.

Both companies offer a convenient alternative to the traditional selling process and allow you to move on your own timeline. However, these companies can charge high service fees, and there’s a chance you could sell for less than your house is really worth.

Our advice on using Knock vs. Opendoor

If you want to avoid the traditional listing process but aren’t sure if it’s worth the cost, we recommend comparing offers from multiple cash buyers with what a realtor thinks you could get on the open market.

When you’re ready to explore your options, our team can help you get competing quotes from multiple cash buyers, including iBuyers and local investors. We can also connect you with a free home valuation from a top local realtor. That way, you can compare offers against your home’s potential sale price. Our service is free to home sellers, and there’s no obligation to move forward with an offer or listing.

Compare fair cash offers from leading cash buyers and iBuyers to the sale price you’d get with an agent.

Knock vs. Opendoor: Which is better?

Which company is better for you depends on your priorities.

Opendoor is best if you want to sell fast, even if at a lower sale price. Knock is best if you’re purchasing a new home and want to be able to move on your own timeline. You can buy before you sell and still potentially get the maximum price for your old house.

Here’s how the companies compare on key factors.

You get a higher sale price with Knock

Knock’s service requires you to list your house with a realtor but provides a backup cash offer in case it doesn’t sell. Selling on the open market is almost always the best way to get the highest purchase price for your home.

Opendoor buys your home directly from you — typically for a little less than market value. The benefit is a fast, easy sale.

Opendoor’s fees are lower

Opendoor has a 5% service fee to use its iBuying program. Since you sell directly to the company, you don’t have to pay a commission to a listing agent or buyer’s agent.

Knock’s buy-before-you-sell program requires you to pay a 2% service fee, about $1,850 in administrative loan costs, and realtor commissions, so the total fee can exceed 8%. You also have to pay back any mortgage payments that Knock made on your old house while it was on the market.

Both companies require you to pay for repairs and closing costs.

Knock is more geared toward buyers

Knock’s business model is more tailored to buyers’ needs than Opendoor’s model. Its Home Swap program lets you tap into your current home’s equity to buy a new home. And Knock Go enables you to make non-contingent offers on homes.

Opendoor doesn’t provide loans for buyers. It does sell homes, but Opendoor customers frequently complain that its homes have shoddy repairs.

Opendoor is available in more areas

Opendoor operates in 26 states and Washington, DC, while Knock serves 19 states and Washington, DC. However, Knock has less strict purchase criteria, so more sellers can qualify for its program.

Opendoor prioritizes speed

Like all iBuyers, Opendoor can make near-instant offers and close in a few weeks. Knock focuses less on a fast sale and more on getting you maximum value for your home. You have to list for six months before you can accept a cash offer from Knock.

Knock vs. Opendoor: How they work

Knock is a home trade-in service, and it also offers loans for buyers. Opendoor is primarily an iBuyer, but it also offers traditional listings, homes for buyers, and title insurance.

Buying and selling with Knock

With Knock, you list your old home on the open market, but Knock will buy your house for cash if it fails to sell the traditional way. Home trade-in services aren’t as fast as iBuyers, but they’re convenient and can potentially net you more money.

Buying with Knock

Knock can give you a loan to help you make competitive cash offers on homes.

Selling with Opendoor

Opendoor offers sellers the following services: Sell to Opendoor, Opendoor Exclusives, List with Opendoor, and Buy & Sell. Here’s how each one works.

Buying with Opendoor

Buying with Opendoor isn’t much different than buying with a traditional real estate agent. Here’s how it works.

Offers and fees

How much can you get for your home with Knock vs. Opendoor?

Opendoor pays more than a traditional cash buyer would, but it’s still less than you’d get with a realtor. While individual offers vary, we’ve seen indications that Opendoor’s offers are becoming less appealing. For example, one recent customer claimed that Opendoor’s offer was 18% lower than their home’s fair market value.

Knock’s offer is only available if your house fails to sell on the open market. Knock says it pays up to 80% of a home’s market value, and it reassesses its offer every 45 days.

What fees do Knock and Opendoor charge?

Knock fees

Knock charges a 2% service fee, plus $1,850 in loan costs, based on your home’s estimated list price. You can pay that fee at closing or have it deducted from your equity advance. You also need to pay realtor commissions, which average around 6%.

Closing and repair costs vary. You should expect to pay an average of 1% in closing costs. Repair estimates mostly depend on your home’s condition, but Knock can advance you a loan of up to $35,000 for repairs.

With Knock Home Swap, you should compare the interest rates for Knock’s home equity advance with what other lenders charge. Knock’s interest rates are usually comparable to the market average, but you might find a better rate in your area.

For Knock Go, the company charges a $1,450 administrative fee.

Opendoor fees

Opendoor charges a 5% service fee for iBuying, which is similar to the 5–6% realtor commission on a traditional home sale. Closing costs vary but are usually around 1%. If you want to stay beyond your closing date, you can stay for up to 17 days for a daily market rate.

The company also deducts repair costs from your initial offer, which can lower your offer by thousands. Unfortunately, there’s no way to predict how much repairs will cost. Opendoor requires you to use its own contractor, so it’s hard to know if the repair costs are fair.

Customer reviews

Knock reviews

Knock has excellent reviews overall. Positive reviews emphasize the convenient trade-in service and quality customer service. A few negative reviews mention the amount of paperwork required.

Customer service is excellent

Knock’s customer service team consistently gets top marks. As this reviewer said, “Every call was answered or promptly returned. Every question was promptly answered.” Many customers were impressed by how easy Knock was to contact and how promptly it responded to issues.

Trade-in service is convenient

Many Knock customers appreciated the convenience of buying first and still getting the best price for their old home. This customer’s review is typical: “The Home Swap program allowed us to move before selling our old home, use our realtor, and without getting shortchanged on the selling price of our home.”

Paperwork is overwhelming

While complaints about Knock are rare, some customers felt overwhelmed by the amount of paperwork. As one customer said, “The list of documents required was constantly changing. They needed supporting documents for our supporting documents ad infinitum. It ultimately delayed our closing.”

Opendoor reviews

Opendoor has good reviews overall. However, it has recently received more negative reviews, suggesting a decline in service quality. The company gets high marks for convenience and customer service, but it also gets many complaints about bad repair jobs and low offers.

Selling to Opendoor is easy

Many reviewers thought it was quick and easy to get a cash offer from Opendoor. For example, this seller said, “Opendoor made it very easy to show my home, proceed through closing, and sell my home with minimal effort.”

Service quality is high

In general, Opendoor customers experienced good service. One seller said, “They take you step by step, it’s very easy and fast, hassle free. … Any questions I had were answered, everyone I talked with at Opendoor were friendly and helpful.”

Sellers who used List with Opendoor were often especially happy with the quality of Opendoor’s local agents.

Repairs are poorly done

Many reviewers complained about repairs that seemed rushed, sometimes costing new buyers thousands.

One buyer reported that “the electric work had to be completely redone as it was a safety hazard, the small details like hardware and painting was all done poorly and without care. The two full bathrooms they renovated are NOT waterproof.”

To avoid bad repairs, visit Opendoor homes with an agent who can point them out.

Offers are often low

Several sellers complained about Opendoor’s low offers, which have declined over the past year. Others thought fees and repair costs were high. As one seller said, “They will not offer a fair price for your home and then will gouge you at every turn.”

Availability

Knock locations and eligibility

Knock operates in 19 states and Washington, DC. Knock Go is available statewide wherever Knock operates, but Knock Home Swap is available only in select markets in each state.

The company accepts most single-family homes, townhomes, and detached homes for its home swap program.

It doesn’t accept homes that:

• Are bank-owned
• Are distressed
• Are in age-restricted communities
• Have significant foundation or water damage
• Have unpermitted additions
• Are second properties

Also, Knock won’t make an offer on your home if there isn’t enough recent sales data of similar homes in your area.

Opendoor locations and eligibility

Opendoor serves 54 metro areas in 26 states and Washington, DC. Some services, like List with Opendoor, are available only in select markets.

Generally, Opendoor only buys homes that:

• Are single-family homes or townhomes (condos or duplexes in some areas)
• Were built after 1930
• Are worth under $1.4 million (ideally $100,000–600,000)
• Are on a max lot of 2 acres (1 or 1.5 acres in some areas)
• Have clear ownership
• Are vacant or owner-occupied at closing

Opendoor doesn’t purchase properties that:

• Are foreclosures or short sales
• Have damage from fire, floods, or natural disasters
• Have septic systems
• Have unpermitted additions
• Are in flood zones
• Have dated building materials
• Have foundation or structural issues

Alternatives to using Knock or Opendoor

Sell to another cash home buyer

If you want to sell your house fast for cash, you should compare offers from multiple buyers. Knock and Opendoor are just two of many companies that buy houses for cash — and most can close in just a few weeks.

Some cash buyers may make better offers or have perks that work better for your situation. For example, Offerpad allows you to stay three days beyond your closing date for free.

If you’re looking to save time, a free service like Clever Offers can help. Simply tell their team about your property, and they’ll gather multiple competing offers from serious cash buyers in their network. If you decide to list on the open market instead, they can connect you to a top local agent for a 1.5% listing fee — about half the typical listing commission.

Get offers sent straight to your inbox, with no extra fees or obligation to move forward.

Top companies for guaranteed cash offers

Company	Our Rating	Service Fee	Time to Close
Compare offers from top cash buyers Clever Offers	5/5 3,681 reviews	None	Varies	Learn More On realestatewitch.com
Opendoor	4.2/5 4,154 reviews	5%	14–60 days	Learn More On realestatewitch.com
Offerpad	3.9/5 2,814 reviews	5%	8–90 days	Learn More On realestatewitch.com
Orchard	4.3/5 640 reviews	1.9% + 6% brokerage fee	14–60 days	Learn More On realestatewitch.com
Knock	4.8/5 879 reviews	2.25% + $1,850 loan fee	Varies	Learn More On realestatewitch.com
We Buy Ugly Houses	4.6/5 2,459 reviews	None	3 weeks	Learn More On realestatewitch.com

List on the open market and use a cash offer as backup

Another option is listing your house on the open market with a realtor — preferably from a brokerage offering below-average commission rates. This is usually the best way to get the most money on your sale.

Selling with a realtor might take longer, but many realtors can adjust their selling strategy to your timeline.

Plus, you can usually find a realtor who will solicit cash offers from investors and negotiate a fair price for you. You can use a cash buyer as a backup in case your house doesn’t sell quickly enough on the market.

As Nashville realtor Barry Richards says, “You’re going to get the most money when you have people competing with each other, and that’s going to happen when you list on the [open market]. But you can use that iBuyer’s offer as a baseline.”

» SAVE: Get a top local agent, save thousands on commission when you sell