Knock, a popular iBuyer that connects homebuyers with properties after buying their old ones, is expanding its home trade-in model in North Carolina.
Last week, the Atlanta-based startup announced that it was bringing its iBuyer services to three cities in North Carolina: Raleigh, Durham and Chapel Hill. The idea, according to Knock co-founder Sean Black, is to bring its trade-in model (the company buys a home on the clients’ behalf in cash, works out a mortgage and then takes over the sale of their old property) to a new market.
“We’re incredibly excited to launch in the Triangle as our third market and to bring its consumers convenience, certainty and cost savings through our revolutionary new approach,” Black said in a statement.
“Our Home Trade-In program is life-changing for people who are buying and selling at the same time. We manage the entire complex process for them, help them unlock the equity in their existing home in order to make a successful offer on their dream home and so much more.”
North Carolina’s tri-city area, after Atlanta and Charlotte, is another of Knock’s major market expansions across the U.S. The company has already begun working with homeowners in the market to provide analysis of how local properties are going to sell.
According to the company, 71 percent of homebuyers in the North Carolina area are also trying to sell a property at the same time. As home prices nationwide go up due to high housing demand and limited supply, Knock aims to give homebuyers who need a mortgage a leg up against those who have the money outright.
The company, which lets customers move into their new home before it even lists the current one and makes money by charging a 3 percent commission on the sale, is meant to provide security for those who are worried about not being able to sell their current home — Knock buys the property at a prearranged price if the house is still does not have a buyer after six weeks on the market.
As iBuyers start to slowly gain the trust of homebuyers, Knock plans to tap into even more markets, eventually expanding to 10 cities by 2020.