🔑 Key takeaways
Knock is a mortgage lender whose signature service is a home trade-in option called Home Swap. The program offers an alternative to traditional lenders, which typically won't approve two mortgages (due to limits on a borrower's debt-to-income ratio).
Knock Home Swap allows you to purchase a new home and move in right away. Then, the company handles repairs and pays your mortgage until your home sells on the open market. When you finally sell your old home, your old home’s mortgage and repair costs — plus Knock’s service fee — will be deducted from the proceeds.
According to hundreds of Knock reviews, the Home Swap program helps customers land their dream homes in competitive markets and greatly reduces the stress of home selling.
Currently, Knock is available in 50 metros across ten U.S. states. If you live within an eligible service area, you can apply for financing through Knock, just as you would with any other lender.
If Knock approves your application, your next step is to find a real estate agent. Clever can connect you with full-service agents across the U.S. who work for pre-negotiated low commission rates. You can save thousands by paying just $3,000 or 1% in listing fees!
What is Knock.com?
Knock, at a glance
💰 Knock real estate fees
1.25% of new home’s purchase price + $1,450 for processing and underwriting
Up to six months
⭐ Customer rating
4.8/5 (700+ Knock reviews)
50 metro areas across ten states
Launched in 2015 by the founders of Trulia, Knock addresses the tricky timing issues homeowners face when selling their old home and purchasing a new one.
To secure financing for a new home, buyers typically need to sell their old home first. This is a major contingencythat can cause deals to fall through.
Knock aims to avoid this stress and uncertainty. Because Knock can guarantee a buyer for your old home — in the form of its own backup offer — the company can offer greater flexibility in qualifying home buyers for a new mortgage.
This helps you make more competitive offers on your next home, upping the chances that you'll secure your first choice. Once you’ve purchased and moved into your new home, you can deal with preparing, listing, and showing your old home while it’s vacant.
In 2017, Knock raised a total of $44.5 million in combined Series A and Series D funding. At the time, Knock distinguished itself from other iBuyers by encouraging customers to sell their old homes on the open market. Unlike Opendoor and Offerpad, which make cash offers on homes, Knock planned to purchase just 10-20% of customers’ homes.
With time, Knock’s emphasis on open market sales grew. In June 2020, Knock began to focus on expanding its partnerships with established brokerages and local real estate agents. As of November 2020, Knock’s network featured 40 brokerage firms with more than 27,000 agents. In 2021, Knock rapidly expanded from 15 to 50 metros.
Today, the company declines to provide specific data but emphasizes that most customers sell their homes on the open market.
This is generally good for customers, who have the potential to receive more than their asking price in competitive markets. If a home fails to sell after six months, Knock will still provide a backup offer equivalent to 80-85% of the home’s fair market value.
Looking for Knock.com reviews from customers? Find them here!
✍️ Editor’s take: Knock is allows you to make a non-contingent offer on a new home before selling your old one. But keep in mind that you’ll have to pay back carrying costs (including overlapping mortgage payments) and Knock’s backup offers are only worth 80-85% of fair market value.
How to sell your home with Knock Real Estate's Home Swap
Step 1: Find an agent
Knock has no in-house agents, so you’ll work with a traditional real estate agent to sell your home.
Clever is a free service that can introduce you to a top rated realtor in your area. Our agents work for top brokers like Keller Williams and RE/MAX. Clever agents work for pre-negotiated, low listing fees of just $3,000 or 1% while still providing full service.
Step 2: See if you qualify for Knock
Applying to use Knock’s services is free, and you’ll have no obligation to accept its loan offerings. To start, fill out a brief questionnaire on Knock’s website.
The form will ask basic questions about your financial situation. Within 48 hours, Knock will let you know if you’re pre-qualified — and if you are, you can move on to pre-approval.
At this stage, you’ll complete a formal mortgage application and submit official documentation so Knock can evaluate your background and prepare an offer. Within 48 hours, you’ll know whether you qualify for a home loan to purchase your next home.
Step 3: Review Knock’s offerings
If you qualify for Knock, you’ll receive all the specifics of what the company can offer.
Knock currently offers conventional, jumbo, and in some cases, VA home loans, as well as its Home Swap bridge loan. The exact amounts are based on Knock’s evaluation of your old home’s equity and how much you plan to put down on a new home.
In addition to a traditional home loan, Knock offers an interest-free Home Swap loan up to $200,000.
This bridge loan can cover three things:
- Down payment (up to 20% of new home)
- Six months of mortgage payments on your old home
- $25,000 toward repairs or improvements to your old home
Knock's Home Swap loan comes with two caveats. First, you should know that Knock will place a lien against your property until you pay the loan back in full. Additionally, Knock won’t give you the cash outright — instead, it will pay approved costs on your behalf.
Step 4: Purchase and move into a new home
If you decide to move forward with Knock, you begin your home search knowing that you can make a non-contingent offer on the home of your choice.
Once you purchase your new home, Knock will take over the mortgage payments on your old home, so you won’t have to cover two monthly payments at once.
Step 5: Prepare, list, and sell your old home
Once your home is vacant, you’ll have a 45 day window to make any repairs or improvements. You’re free to use Knock’s network of contractors, or you can handle these repairs yourself.
When your home is ready, your real estate agent will handle the process of listing, marketing, and showing your old home, just as they would in a traditional sale.
You’ll have six months to find a buyer for your old home — which gives you an opportunity to get the most competitive offer possible.
If your home doesn't sell on the open market, you can always accept Knock’s backup offer, which is typically 80-85% of fair market value for your old home.
Step 6: Settle your bill
You won’t have to pay Knock’s fees until you sell your home. When you receive the proceeds from your home sale, Knock will deduct its interest-free Home Swap loan and service fees.
Keep in mind that you’ll also need to pay all the usual costs associated with selling your home at this time, including realtor commission and closing costs.
The convenience of using Knock comes at a slightly higher cost than a typical lender. Though Knock’s 1.25% service fee is comparable to a lender’s origination fee, most leaders charge 0.5-1% of the cost of your new home.
For example, if your new home costs $200,000, you’d pay a $1,000-2,000 origination fee, compared to Knock’s $2,500 service fee.
Knock also charges a $1,450 fee that covers processing and underwriting.
These fees, plus your mortgage payoff and the bridge loan, are deducted from your final proceeds.
Keep in mind that you’ll also have to pay all the typical costs of real estate transactions, including closing costs, realtor commission, and more.
🤝 Service fee
📋 Processing and underwriting fee
💰 Closing costs
1-3% on home sale | 2-5% on home purchase
🧑💼 Realtor commission
🛠️ Repairs or upgrades
Varies (Knock offers an interest-free $25,000 advance)
🏡 Mortgage payoff
Sellers who list with Clever can receive full service support while paying a fraction of the standard commission rate. Our partner agents come from the nation's top brokerages and work for pre-negotiated rates of just $3,000 or 1% in listing fees!
After paying the buyer's agent fee, you'll only pay 4% in commission, compared to the typical 6% fees. Plus, eligible buyers receive a cash back refund of 0.5% at closing with Clever Cash Back.
Do you qualify for Knock?
In a nutshell, Knock has to make the numbers work before agreeing to work with you. You’ll have to qualify for a conventional mortgage — and the expected proceeds from selling your old home will have to cover the loans and services Knock is providing.
As with any lender, Knock requires customers complete two screening processes:
- Step 1: Pre-qualification that estimates the approximate size of your loan
- Step 2: Pre-approval during which Knock offers the terms of your loan
Because Knock expects customers to sell their old homes on the open market within six months, the company also takes your old home into consideration.
The company’s criteria is flexible, but Knock typically wants to work with sellers who:
- Plan to sell and purchase their primary residence (not a vacation home or rental property)
- Plan to buy or sell a condo, townhome, or single family home
- Live within a current service area
Knock might deem your home ineligible if you:
- Live in a 55+ community
- Have significant water damage or foundation damage
- Lack recent, similar sales data in your area
- Have unpermitted additions
Additionally, Knock doesn’t currently accept distressed or bank owned homes. In these situations, we recommend working with an experienced real estate agent who can showcase your home to the right buyers in your area.
Is Knock available near you?
Knock is currently available in 50 metros across ten U.S. states.
Bakersfield, Los Angeles, Orange County, Riverside/Palm Springs, San Bernardino, San Diego, Santa Barbara, Ventura
Colorado Springs, Denver, Boulder, Ft. Collins, Greeley
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
Atlanta, Athens/Clarke County, Gainesville, Dalton, Rome
Charlotte, Raleigh-Durham, Burlington, Hickory
Charleston, Columbia, Greenville, Spartanburg
Austin, Dallas-Fort Worth, Houston, San Antonio
» Not available near you? Find the best Knock Real Estate alternatives.
Knock.com reviews skew positive compared to most iBuyer companies. Knock currently has an average star rating of 4.8, according to 700+ reviews on Zillow. Knock isn’t currently accredited by the Better Business Bureau but has an B+ rating with four complaints.
Home sellers appreciate Knock Home Swap's convenience — especially in highly competitive markets. Knock trade-in reviews emphasize the benefits of making a cash-like offer on a new home, avoiding disruptive showings, and getting extra time to prep their old homes after moving out.
Throughout our in-depth iBuyer research, Knock's transparency also stood out. Though Knock’s backup offers are only worth 80-85% of fair market value, it guarantees that your home will sell within six months. By contrast, most iBuyers claim to offer fair market value but decline to disclose specific data.
For example, Knock's Home Swap allowed Theresa T. to secure her dream home in a tough market:
Andrew N. was impressed by Knock's customer service, which greatly reduced the stress of purchasing a new home:
Similarly, Chance B. became a fan of Knock when its Home Swap program drastically reduced the stress of coordinating a home sale and purchase:
That said, some Knock complaints note that there’s room for improvement in the company's team-based communication and customer service.
It’s also important to note that many Knock reviews name specific agents — so your experience will largely depend on your local area, which agents participate with Knock, and who you end up working with.
We always recommend interviewing several agents to find one who aligns with your goals. Clever can match you with top rated agents in your area for free with zero obligation. Best of all, our agents work for just $3,000 or 1% listing fees!
How does Knock compare to alternatives?
Knock vs. Orchard
Knock isn’t the only home trade-in service on the market. Since 2017, Orchard (formerly called Perch) has also offered similar services.
Below, we break down the key differences between the two services. We also wrote an in-depth Orchard review of the competitor's risks and benefits.
⭐ Average customer rating
50 metros across AZ, CA, CO, FL, GA, MN, NC, SC, TN, and TX
11 metros across CO, GA, MD, NC, TX, and VA
🧑💼 In-house agents?
Find your own agent
🚚 Move first
🛠️ Assistance with repairs
Interest-free Home Swap loan (up to $25,000)
Deducted from proceeds
🔒 Backup offer
Knock vs. iBuyers
By positioning itself as a lender, Knock wants to distance itself from iBuyers — a group of companies that use technology and in-house real estate expertise to make cash offers on homes.
There are two key differences between Knock and iBuyers:
- Offer price on your old home
Knock customers work with real estate agents to sell their homes on the open market. This allows you to potentially receive more than your asking price — or at least a competitive offer.
By contrast, iBuyers typically offer fair market value at most. You won’t have much room to negotiate.
On the flip side, iBuyers can move much faster than Knock. For example, Opendoor can provide an initial cash offer within 24-48 hours, and you can close on your home in as little as 14 days.
» COMPARE: Request an offer from Opendoor!
Knock changes the timeline of a real estate transaction to provide more flexibility, but you should still anticipate spending around 25 days to find a buyer for your old home, plus 30-45 days for closing.
Should you use Knock's Home Swap?
✅ You may want to use Knock’s Home Swap program if…
❌ You may want to avoid Knock’s Home Swap service if…
If you're concerned about missing out on your dream home due to a competitive market, Knock's Home Swap may be a great option. The program will help your offer stand out by removing the contingencies around selling your old home.
Knock reviews also emphasize that Home Swap reduces the stress of home selling. You'll get to move into your new home right away, so you won't be interrupted by contractors or people interested in touring your property.
If you decide to move forward with Knock, you'll still need to hire a great real estate agent. Clever can match you with top rated agents who know your local market and work for pre-negotiated listing fees of just $3,000 or 1%!
Is Knock.com legit?
Yes — Knock is a legitimate business that offers loans to home buyers and sellers. Knock's Home Swap lets you make a competitive, cash-like offer on a new home before selling your old one. However, you'll still have to hire your own real estate agent. Compare low commission real estate companies to save thousands on your next sale.
How does Knock.com work?
Knock follows the same pre-approval process you'd use to secure a traditional mortgage. The key difference is that you can make a non-contingent offer on your new home before selling your old one. You can move right away, and Knock will cover your mortgage until you find a buyer. At the end, you'll settle your bill with the proceeds from your home sale. Learn more about how Knock works.
How does Knock.com make money?
Knock earns money in two primary ways:
- Through its 1.25% service fee, which replaces the origination fee a lender would typically charge
- By selling loans in the secondary mortgage market — a standard practice many lenders engage in
TechCrunch. "Raising a $32M Series A, Knock seeks to stand out with new model for selling homes." Accessed March 12, 2021. Updated January 31, 2017.
Forbes. "Knock Home Swap: A Timely Solution For Home Sellers Who Are Also Home Buyers To Bid Competitively." Accessed March 12, 2021. Updated November 23, 2020.
Inman. "Want to win the bidding wars? Here’s how." Accessed March 12, 2021. Updated February 22, 2021.
Investopedia. "Origination Fee." Accessed March 12, 2021. Updated August 27, 2020.
Knock. "Frequently Asked Questions." Accessed March 12, 2021. Updated 2021.