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 can make an instant cash offer on your home.
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 selling as fast as possible, but you’ll get a lower sale price than you would on the open market.
Both companies offer a convenient alternative to the traditional selling process of preparing and showing a home. And both allow you to move on your own timeline. However, these companies can charge higher fees than traditional realtors, and they make lower cash offers than market value.
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 .
If you’re looking for a hassle-free way to explore your options, Clever Offers is a good place to start.
Clever’s free service matches you with a licensed realtor who helps you screen and compare offers from top cash buyers and iBuyers in your area. You also get a free professional home valuation, so you can check each cash offer against your home’s estimated market value. If you decide to list instead, you get a low 1.5% listing fee through Clever’s network of top local agents.
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 value a high sale price over speed. You can buy before you sell and still potentially get the max price for your old home.
Here’s how the companies compare on key factors.
|Sale price||✅ You can try selling on the open market for a higher price.||❌ Offers are less than your home’s market value.|
|Fees||❌ Realtor and service fees total ~8%.||✅ The iBuying service fee is 5%.|
|Availability||❌ Services are available in 19 states and DC.||✅ Services are available in 26 states and DC.|
|Buying||✅ Loan programs make it easy to buy before you sell or make non-contingent offers.||❌ Customers complain about poor repairs on homes they purchased from Opendoor.|
|Speed||❌ You only get a cash offer if your house doesn’t sell after six months.||✅ You get an instant cash offer and can close in weeks.|
You get a higher sale price with Knock
Knock’s service requires you to list on the open market before it makes a cash offer. 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 for 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 commission to a listing agent or buyer’s agent.
Knock’s Home Swap program requires you to pay a 2% service fee and realtor commission, so the total fee is around 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 customers frequently complain that Opendoor 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.
|Knock services||Opendoor services|
Buying and selling with Knock
Knock is a home trade-in service, which allows you to buy first and sell later. 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?
|Service fee (cash offer option)||2%||5%|
|Commission fee (listing option)||~6%||5%|
|Estimated closing costs||1% + mortgage payments on old home||1% + any late checkout fees|
|Estimated repair costs||Based on inspection||Based on inspection|
Knock charges a 2% service fee 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 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.
|4.8/5 (833 reviews)||4.3/5 (3,599 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 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.”
|Locations||AZ, CA, CO, DC, FL, GA, IL, MD, MI, MN, NC, NJ, OH, OR, PA, SC, TN, TX, WA, WI||AL, AZ, CA, CO, DC, FL, GA, ID, IN, KS, MA, MI, MN, MO, NC, NM, NV, NJ, NY, OH, OK, OR, SC, TN, TX, UT, VA|
|Purchase criteria||Most single-family homes, townhomes, and detached homes|| |
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.
To easily compare offers, we recommend using Clever Offers.
Clever pairs you with an agent who fields offers from multiple cash buying companies. Your agent helps you quickly compare offers to see who’s offering the most money and best terms. They also give you a free home valuation report so you know how much your house could get on the open market.
If you decide to list on the open market instead, Clever can connect you to a top local agent for a 1.5% listing fee — about half the typical listing commission.
Top companies for guaranteed cash offers
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. 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.”
Real estate tech companies have struggled over the past year because of rising interest rates and a cooling housing market. Last year, Knock laid off nearly half its staff and abandoned plans to list on the stock market. Opendoor went from purchasing 160 homes per day in June 2022 to fewer than 20 per day at the start of 2023.
However, a few signs offer an optimistic outlook. Knock claims that private financing will still allow it to expand, and it announced in early 2023 that it’s launching partnerships with third-party lenders. Opendoor returned to profitability this year, although its core business remains under pressure.