We recently hosted the “Hands-on with the Knock Home Swap” webinar, where over 1,000 attendees went under the hood of the Home Swap process. As a new solution to the agent toolkit, there were a lot of great questions asked and answered. Here are the top ones.
How does the Home Swap work?
As a game-changing buy first/sell later solution, the Knock Home Swap™ helps clients purchase the new home they want before selling the old house they have.
The majority of homeowners must successfully sell before buying in order to unlock the funds they need to purchase their new home. In this market, where homes are flying off the shelves and inventory is strapped, this can mean your buyer has to find an interim solution (temporary housing, a long-term rental) and go through the pains of moving their family twice.
The Home Swap flips the process. Knock will loan your client the equity in their current home via their Equity Advance and pre-approve them for a new mortgage, so they can make non-contingent (re: winning) offers and move into their dream home first. Then, they’ll list their new home, sell, and pay off the Equity Advance loan. Your clients can take their time finding their dream home in today’s limited inventory and be more likely to have the winning offer when they find it.
What do I need to offer the Home Swap to my clients? Is there a training course?
Knock knows that your life as an agent is jam-packed, so they make becoming certified easy. You’ll sign up for a one hour training with an additional 30 minutes for Q&A, during which a member of the Knock team will walk you through the process. They’ll even help you download Knock’s agent app, which puts all things Home Swap right at your fingertips. Trainings are held five days a week.
(Pro tip: After becoming certified, you’ll gain access to a store of Home Swap-related resources and marketing materials.)
Where can I offer the Knock Home Swap?
Great news: Knock is available in 40 markets across the country, from Southern California to recently announced South Carolina. Even better news? Knock is expanding rapidly and has plans to be in more than 100 markets by the end of 2023, so even if it’s not currently available in your neighborhood, stay tuned.
(Side note: Did you know you can do cross-market Home Swaps? As long as your buyer’s old house is located in one of the markets that Knock serves, your buyer can move to any state where Knock is licensed.)
Does it cost me anything to become Knock Certified?
Nope! Becoming Knock Certified is 100% free— and Knock doesn’t take a cut off your commission or charge per deal. All your earnings stay exactly where they should: right with you.
How does Knock make money?
Knock charges your client a 1.25% convenience fee on the purchase price of your client’s new home, which is comparable to the origination fee that other lenders charge.
What are the loan details of the Home Swap?
All Home Swap loans are conventional and the purchase price of the new home must fall within the conforming loan limit. However, Knock is working to expand to jumbo loans soon!
Have additional questions about the Knock Home Swap? Learn more in the full webinar here.