Two more cities in the western United States are eligible for Knock’s Home Swap, according to a press release from the tech-enabled specialty mortgage company.
In Tuscon, Arizona, and Colorado Springs, Colorado, homeowners are now able to work with Knock-certified agents to “buy before they sell,” leveraging the company’s unique lending model.
Sellers who lack the cash to compete in today’s tight seller’s market and would otherwise have to make an offer contingent on the sale of their current home can be pre-approved for a Knock loan and, thus, be better prepared to enter the market for their next home.
Mortgages issued through Home Swap are competitively priced and require a 1.25 percent convenience fee. Knock does not service its loans but instead sells them on the secondary market after closing.
The two new cities give Knock a 17-market footprint across the country. The company is already active in Denver in Phoenix.
“The pandemic has accelerated migration to markets like Tucson and Colorado Springs that offer affordability, growing economies and quality of life,” said Knock co-founder and CEO Sean Black.
Black said the traditional way of buying a home often puts homeowners who have to sell their house before buying their next home at a disadvantage.
In total, Knock will provide a bridge loan of up to $200,000 to cover a down payment advance on the new home, home preparation and repairs for the home being sold, and up to six months of mortgage payments on the old house.
Agents who become certified to sell Home Swaps are trained in under a half-day and have the opportunity to earn commission as both the listing agent and buyer representative, based on the new home’s brokerage cooperation.
Knock seeks specific brokerages in each market to lead adoption, but any agent can apply to become certified in an active market.
According to the press release, Knock is partnering with HomeSmart Advantage Group in Tucson, RE/MAX Properties, Inc. of Colorado Springs and Keller Williams Premier Realty in Colorado Springs.
“We are thrilled to partner with Knock to help our clients ease the stress when purchasing their next home,” Derek Wagner, broker-owner of Keller Williams Premier Realty, said. The ability for our clients to sell their current home after they move into their new home and maximize their profit is a huge advantage.”
Riana King, head of business development of Tuscon’s HomeSmart Advantage Group, said that Home Swap alleviates the stress homesellers deal with when having to accommodate multiple showings, repair professionals and showing headaches.
“When they go to sell their old house, they are able to skip the stress of living in their home while it is being marketed and shown for sale,” King said.
Knock provides a backup offer on the old house in the unlikely event that it doesn’t sell within six months.
According to the company’s records, 90 percent of Knock homes sell in 90 days or less.
Have a technology product you would like to discuss? Email Craig Rowe
Craig C. Rowe started in commercial real estate at the dawn of the dot-com boom, helping an array of commercial real estate companies fortify their online presence and analyze internal software decisions. He now helps agents with technology decisions and marketing through reviewing software and tech for Inman.