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A New, Bold Bet in Real Estate – Knock

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Knock was on Product Hunt yesterday. The value proposition to the seller:

Sell your home in 6 weeks or less. Or we’ll buy it from you for full market value

I have to admit, that seems compelling (disclosure I’ve never actually owned a home, nor sold one). Of course, making a bold statement is always easier said than done.

Guaranteeing a sale at “market price” that they set is actually not taking a ton of risk (on their part) because their own algorithm is setting the price — assuming the market is not tanking and they can turn the house around and sell it quickly without taking a big loss. On the sellers part, the risk is that Knock’s market price will be lower than what the right buyer would pay (but may take longer than 6 weeks to find that person). That said, I have long thought there is a segment of sellers willing to sacrifice a bit on price for peace of mind, convenience, and privacy. This product could hit that segment.

Founded by Jamie Glenn and Sean Black, they have experience and credibility in the industry matched by few startups. We’ll see if they can give OpenDoor a run for their money.

More info: http://www.knock.co/

PS: Surprised I heard about this first on Product Hunt, and not via someone in the industry. I still think a Hacker News / Product Hunt for real estate would be interesting.

About Drew Meyers

Founder of Geek Estate Blog / Geek Estate Labs. Zillow Alum. Travel addict & co-founder of Horizon. Social entrepreneurship & microfinance advocate. Fan of Red Hot Chili Peppers and Kiva.

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  • Ronald Gombach

    RE: “That said, I have long thought there is a segment of sellers willing to sacrifice a bit on price for peace of mind, convenience, and privacy. This product could hit that segment.”

    Agreed — I (and some of my peers) would have bought and sold more homes in our lifetimes had the process been “easier” and better-met our needs. 1,000,000-plus brokers/agents don’t “get it.” Buying/selling homes is not the most important thing in our lives; but, make the transaction a commodity, and more people will sell and buy, more often. Real Estate brokerage promotion has made the “process” appear adversarial — a competition; a battle between buyers and sellers over price. How naive. Should not the process be co-operative, mutually beneficial, win-win? Agents pitting buyers against sellers in their promotion is a big turn-off to those who don’t have to buy or sell, but would (and could) in a more congenial environment.

  • Erik Acheff

    Similar to opendoor as stated in your tag. Most likely they will use data from their platform combined with the local MLS data and partner with some lenders, which will provide them with provide them with the necessary info for what the home will sell for. Very low risk for them in writing an offer. The process itself is not new, there are agents that make this same claim. Big claims are just part of the marketing strategy. Most agents know what buyers are in the market through their own listings or from their office.

    When doing any real estate transaction, you need to completely understand the contracts before you sign. Trust your gut as far as the marketing and sales person.

  • Jenny Harper

    I’m trying to show a house for my buyers right now that is listed by KNOCK and guess what you can’t get an agent on the phone to answer questions. Agents will get to where they won’t show these homes because Internet Real Estate Companies like this are exactly that “the internet”. They don’t even upload a Sellers Property Disclosure or HOA info and expect for people to make blind offers like that???? this company is a joke! I know this new generation doesn’t need face to face interaction but when it comes to the biggest investment in your life….you might want to hire someone who answers the phone when you call or clients call.

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