SHARE THIS ARTICLE Share Tweet Post Email Knock, a startup seeking to simplify the house-buying process by making it more like purchasing a car, raised $400 million in equity and debt as it seeks to double the number of U.S. markets it operates in. The company, which currently operates in five cities, uses cash to acquire homes on behalf of regular buyers, who agree to buy the property from Knock once they are able to sell their existing house. The model is similar to how car dealers let buyers trade-in old rides as part of the transaction, Chief Executive Officer Sean Black said in an interview.
As Competition To Disrupt Home Sales Heats Up, Startup Knock Plans Rollout To 10 New Cities
As the competition to change the way that Americans buy and sell their homes heats up, startup Knock plans a 10-city rollout. Founded by former executives at real-estate listing site Trulia, Knock has been operating only in Atlanta since its 2016 launch, but with $33 million in venture funding from RRE, Redpoint, Greycroft and others, it’s ready to take its tech-enabled trade-in model bigger. The deal that New York-based Knock offers homeowners is this: If you want to sell your home and buy a new one, it will set up a trade for you so that you can move into the new house before the old one goes up for sale. Knock will pay for the new home with cash, then sell the old one, and do a swap with the homeowner once it sells. Knock gets the standard 3% commission on each of th