Alternative mortgage provider Knock announced a service expansion in the Sunshine State.
Home Swap, the company’s “buy-now/sell-later” lending product, is now available to consumers in Jacksonville, making the northern Florida city its 15th market, according to a press release.
Knock made public a goal of operating in 21 markets by the end of this year. Home Swap is also available in the Florida markets of Miami/Fort Lauderdale, Orlando, Tampa and West Palm Beach.
Home Swap allows homesellers to make non-contingent offers on potential new houses, backed by a Knock mortgage.
A family can then relocate while their previous home is prepared for and shown to the open market. The money for a down payment is offered through a Knock bridge loan, while homeowners can add market preparation repair costs of up to $25,000 to the new mortgage.
If needed, Knock provides a backup offer, should the previous home not sell within six months. According to the company, 90 percent of all homes in the Home Swap program have sold within 90 days.
Since its launch in July 2020, the national housing market has been booming alongside continually falling mortgage rates.
Knock offers certification programs for local agents to learn how to sell and implement a Home Swap. In tight markets, offers not contingent on the sale of an existing home are often advantageous.
Knock offers backup offers in case a home doesn’t sell in under six months. To date, 90 percent have sold within 90 days.
Sean Black | Photo credit: Knock
“By buying before selling, consumers have the convenience of being able to move on their timeline and then list a fully prepped home on the open market for the maximum price,” said co-founder and CEO Sean Black in the press release. “We take the friction out of the process.”
Knock’s Home Prep Concierge offers homesellers access to approved vendors and a single-source for project coordination and payments.
Inman reported that Knock announced a sale-leaseback product in December 2020, called Knock Nest.
Available in select Arizona, Colorado, Florida, Georgia and Texas markets, Knock Nest has a qualification process similar to Knock Home Swap. To get started, homeowners must provide their address, which gives Knock access to information about the home’s age, value, condition and other publicly available information.
Knock buys homes and leases them back to the sellers for 12 months. Upon termination, occupants can repurchase the home, extend the lease or begin a Home Swap.
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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.
