Although the company charges the same 3% commission as a traditional broker, it claims that trading in allows homebuyers to avoid repairs, showings, and uncertainty. Additionally, consumers will not be forced to give up more of their equity, Knock.com said.
The company is led by Sean Black as CEO and Jamie Glenn as COO, both founding team members of real estate site Trulia.
“The Knock home trade-in is truly transformative for consumers,” Black said. “Our goal is to facilitate a seamless home swap by purchasing consumers’ new homes outright with our cash and moving them in before putting their old houses on the market.”
Knock.com also disclosed its plans for “rapid” expansion. The company has already secured licenses in 10 new states and expects to launch in at least 10 cities by the end of 2019. These cities include Charlotte and Raleigh, N.C.; Los Angeles; San Diego; Phoenix; Chicago; Miami, Orlando, and Tampa, Fla.; and Denver.
The company has also hired Allan Ziegler as head of new markets and is growing its team with more than 100 new positions. Knock.com further said that is has raised $33 million in a Series A financing, with RRE, Redpoint, Greycroft, Corazon Capital, Correlation Ventures, Great Oaks Venture Capital, and FJ Labs among its investors.
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Knock.com has announced the launch of its home trade-in platform, which allows homebuyers to move into a new home before their old house is even on the market.