Timing the purchase and sale of a home is of the utmost importance but it can be difficult to nail, Knock Director of National Real Estate Stephen Freudenberg said during an Inman Connect session Tuesday entitled “Tools to Help Solve the Timing Problem in Real Estate.”
Frequently, clients attempt to juggle buying and selling while simultaneously working to qualify for mortgages, save for down payments and spruce up properties — but most solutions for real estate agents to help clients manage it all are imperfect, Freudenberg told the audience of the all-digital event.
Most people are familiar with traditional lenders, which are often the cheapest option. However, Freudenberg argued that these options don’t provide solutions for timing the simultaneous sale and purchase of a home.
Another familiar option, the bridge loan, often leaves clients in the position of paying for two mortgages at once with high interest rates, Freudenberg said. These loans can also be difficult to qualify for, he added.
With iBuyer and hybrid iBuyer options, clients are potentially able to move the process along more quickly, but the risk of dealing with costly convenience and transaction fees — and in the case of pure iBuyers, no agent representation — remains high.
With Knock Home Swap, however, clients can buy before they sell with Knock’s assistance at zero interest, Freudenberg said. Clients still get agent representation and can receive up to $25,000 for listing prep with Home Prep Concierge.
Lyndsey Harp, a Knock Certified Agent with Atlanta Communities who joined Freudenberg in the session, noted that using Knock can be especially helpful as clients deal with all the complications of working and schooling at home due to the coronavirus pandemic.
“The number one thing that I’m seeing is that … a lot of clients have kids who are at home who are doing digital learning right now,” Harp said. “So it alleviates that aspect of the home showing side.”
With Knock Home Swap, Freudenberg added, agents don’t have to worry about giving up commissions or covering program fees to help their clients.
“People are first, all the way,” Freudenberg said of the service.
Knock, a real estate technology startup, operates in Phoenix, Denver, Atlanta, Charlotte, Raleigh-Durham, Austin, Dallas-Fort Worth, Houston and San Antonio.