Offerpad vs. Opendoor vs. Knock: Which Should You Choose?

Offerpad vs. Opendoor | Knock | Opendoor Complete vs. Knock Swap | FAQs

Offerpad and Opendoor are iBuyers: companies that make quick, all-cash offers on houses close in two weeks or less. Both companies charge a 5% service fee and tend to pay less than you would get selling your home on the open market.

✅ Selling to Opendoor or Offerpad is a good option if you need flexibility and want a convenient, hassle-free process.
❌ Selling to Opendoor or Offerpad isn’t the best option if you want to get top dollar for your home. 

Knock is a home trade-in service, not an iBuyer. It gives you the ability to make a guaranteed offer on a new home before you sell your old one.

Knock charges a 1.25% service fee but, unlike selling to an  iBuyer, you’ll still have to pay realtor fees (typically 6% of the sale price).

✅ Knock might be good for you if you need to move before you put your old home up for sale
❌ Knock might be bad for you if you want to save on fees or don’t want to deal with the hassle of a traditional sale on the open market

Offerpad vs. Opendoor

Overall, Opendoor is a better iBuyer than Offerpad because it:

• Generally pays more for houses
• Has no cancellation fee
• Is available in more markets
• Has more lenient purchase criteria; for example, the company buys older homes and homes on bigger lots

However, Offerpad is better than Opendoor in a couple key areas:

• It’s easier to control repair costs. Rather than accepting Offerpad’s repair deductions, you have the option to complete the necessary repairs with the help of your own contractor. Opendoor doesn’t give you this option.
• The closing timeline is flexible. You can close in as few as eight days or as far as 90 days, versus just 14–60 days with Opendoor. 

» Read our full reviews: Opendoor | Offerpad

Opendoor vs. Offerpad, at a glance

Knock

Knock’s home trade-in service, Knock Swap, gives you the ability to buy a new home with a guaranteed offer before you sell your old home. Knock will lend you money to cover up to six months of mortgage payments on your old home and up to $25,000 in repairs to help you sell it. 

» READ: Our full review of Knock

Who is Knock for? 

Knock’s home trade-in service is useful in two specific situations:

1. You want to get maximum value for your home on the open market, without having to stay in it while you prep for the sale and open it up for showings.
2. You need financing to purchase your new home BEFORE you sell your old one and would otherwise have a difficult time juggling two mortgages.

If you aren’t in one of these situations, a traditional mortgage lender might be the best option when you’re ready to buy your next home. You won’t have to pay Knock’s 1.25% service fee and you’ll be able to shop around to get the best interest rate.

How does Knock work? 

1. You request approval for financing from Knock on its website.
2. Once approved, you can make a competitive cash-equivalent offer on a home. 
3. You move into your new home.
4. You work with your real estate agent to do repairs on your old home, stage it, and sell it. 
5. Once you sell your old house, you settle up with Knock using the proceeds.

Note: Even though you won’t have to pay two mortgages at the same time with Knock, you’ll have to pay back the mortgage payments that Knock covered on your old home once it sells.

You can use your own real estate agent with Knock

When you use Knock to buy a new home and sell your old one, you can still work with your own real estate agent. This means you have the opportunity to hire someone who you’re confident can get the most value for your home, and who you believe will be a strong negotiator when you purchase your new home.

You’ll still have to pay a listing agent commission (typically 3% of the sale price) when you sell, but if you use a discount service like Clever Real Estate, you can hire a listing agent who charges a maximum of 1% — saving you thousands of dollars!

Opendoor Complete vs. Knock Home Swap

Opendoor is primarily an iBuyer, but its Opendoor Complete offering functions like a trade-in service. The service is only available in metros where Opendoor has buyer’s agents.

Opendoor’s trade-in service works by combining two of its individual services: iBuying and Cash-backed offers. Here’s how the process works:

1. Submit a request for an offer on your home from Opendoor.
2. Tour homes with one of Opendoor’s buyer’s agents.
3. Make a cash-backed offer on a home.
4. Easily coordinate your selling timeline with your buying timeline so you only have to move once.

Unlike working with Knock, you can pick any lender for your new mortgage, which means you can shop around for the best interest rate. Opendoor’s home loan program offers a $1,000 rebate at closing and no origination fee. If your financing doesn’t come through in time for your closing day, Opendoor will buy the home for you and then sell it back to you at the same price when you’re able to purchase it.

How the service fees stack up

Opendoor charges the same 5% fee that it charges people who use only the iBuyer service. This is likely lower than you’d pay with Knock, which charges a 1.25% fee ON TOP OF any realtor fees you have to pay, which average 6%. 

Compared with Knock, Opendoor provides a quicker and more streamlined service. It also lets you shop for mortgage rates, helping save you money in the long run.

However, Knock lets you choose the agents who will represent you during the buying and selling process. It lets you sell your home on the open market which means you can get the most possible money for your home.

FAQs