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Knock, knock: who is there? It's Sean Black and Jamie Glenn...

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

Knock, knock: who is there? It’s Sean Black and Jamie Glenn and Karan Sakhuja.  Do these names ring a bell to you? Well if you are a Realtor or a Real Estate Practitioner it should. If you are one of the big boys like the Z’s of this world you should be shaking in your booths.

www.endrebarath.com

 

How much did Z pay for T in their acquisition?  Well let me answer it here so you do not need to search for it, Z paid $3.5 Billion to eliminate the competition and the year was 2014.

In 2015 Sean Black and company created Knock, I found it funny and ironic in the selection of the name. Play on words? Taunting the big Z and the rest of the Real Estate Platforms? Well if you did not know it Sean Black and Jamie Glenn were cofounders of T and they were a strong competitor of Z until the big Z bought them out.

If you go on LinkedIn you will be able to read up on their Bio and Mission in detail. Just to give you the short answer here: 

At Knock, we’re on a mission to make trading in your home as easy as trading in your car. That’s important because over 70% of the 6 million home sellers each year are also buying their next home at the same time. Selling a house means months of stress, repairs, uncertainty, night and weekend showings, etc. Most importantly, the majority of Americans have their savings tied up in the equity in their current home and making that savings liquid means helping them move up into bigger houses, in better neighborhoods, with better schools — basically, move up in life! 

Well, you might ask what is the big deal? If you are not sure, let me share with you, I just saw on Inman News that:  Online homebuyer Knock picks up $400M in latest fundraising round !

www.endrebarath.com

 Amy Feldman at Forbes had this to say:
"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 those transactions, and any costs that Knock incurs to buy and maintain the new house until the old one sells can be rolled into the homeowner’s new mortgage. " 

In other words, as Inman states:  Consumers using the company’s trade-in program pay a traditional 6 percent commission to the company. Homeowners also have to pay closing costs and other expenses such as appraisals. 

By now I am sure you have heard that Z has stepped into the online home buying and selling market in a few states. This should be an interesting Game Changer if you want my opinion. More battles for the Internet Real Estate Platforms. I suspect since they need local Realtors there will be a few that will be either getting referral fees or some other formula to get them local representation. So if you have any ideas or more information than I just provided please share your thoughts here in the comments.

www.endrebarath.com

If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly!

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations.

 

 

 

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bruce Kunz  anytime and I agree they are in it for the money, Endre

Jan 23, 2019 01:50 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh, our savvy luxury sellers don't do that either - it's the 'new money' folks that think that $50K in equity is dispensible! LOL I seriously had one recently that got a quote from them just for the heck of it. I was astonished by their Offer - SOOOOO far off! My sellers said that if they had to sell at the price that was offered, they just wouldn't sell.

Jan 23, 2019 02:07 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I guess they can try to come up with a better wheel, but the current wheel is still working quite well.

Jan 23, 2019 06:52 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Marte Cliff  interesting difference between small town USA and small town Europe, ten years ago I was in a small town in Hungary and every house had high speed Internet... hmmm, Endre

Jan 23, 2019 10:38 PM
Marte Cliff

If I lived in town I would have access to high speed, but I live 11 miles out in the country, in a sparsly populated mountain valley. We don't get high speed Internet (in spite of what Hughes Net claims in their ads) and we don't have cell service.


We DO have deer, elk, coyotes, and a few bears, moose, and mountain lions for neighbors. It's a good trade.

Jan 24, 2019 11:18 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff Dowler, CRS  I am hoping that the sellers will understand that they are being short changed in money, Endre

Jan 23, 2019 10:41 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debra Leisek  hope you found your keys and liked my post:))Endre

Jan 23, 2019 10:42 PM
Debra Leisek

yes to both!! I have keyless entry now! ha!

Jan 24, 2019 12:21 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat Palmiotti  yes there is a trade off for easy and convenient 30% is what I heard in price difference, Endre

Jan 23, 2019 10:46 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia Feager, MBA, CRS, GRI,MRP  looks like Debe Maxwell, CRS  answered your question, in California we have Escrow & Title Companies and Listing Agents and Buyer's Agents... my understanding is that they are stuck with the agent who is looking out for the best interest of the company they work for, so might as well call it "no representation", Endre

Jan 23, 2019 10:48 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia Feager, MBA, CRS, GRI,MRP  the company is "knock" I made a play on words "knock knock who is there" Endre

Jan 23, 2019 10:50 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gabe Sanders  time will tell, just because the Z is doing it my money is that these guys will do better than the Z never the less it is one more threat to our profession, Endre

Jan 23, 2019 10:51 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

M.C. Dwyer  you make a great point maybe they did not pick up on that part of the message:)Endre

Jan 23, 2019 10:53 PM
Matthew Klinowski, PA
Downing Frye Realty - Naples, FL
Naples Golf Guy | Find Your Dream Lifestyle

Good morning Endre, thanks for the background on Knock. The industry is certainly changing and these types of programs will take advantage of sellers.  It sounds a little like a loan on a car when it's positioned at a lower price per month but the length of the loan is spread out over 5 years instead of 3 years.  The ultimate result is you pay more because the interest on a 5 year loan is much greater than a 3 year loan! Have a great day.

Jan 24, 2019 05:00 AM
Scott Seaton Jr. SLS Home Insp
SLS Home Inspections-Kankakee Will Iroquois Grundy Counties - Bourbonnais, IL
The Home Inspector With a Heart!

we're seeing more and more companies offering FREE home inspection, cutting out the local inspection company and "saving" them a bunch of money because they already negotiated a flat rate deal. I am constantly adding new features included with my inspection to stay ahead of these changes. 

Jan 24, 2019 06:47 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Very interesting post.   It's a fast changing business for sure and there's always something "knocking" on the standing positions.

Jan 24, 2019 03:53 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jon Kolsky  I agree with you and it reminded me when 15-18 years ago there were these Internet Young Turks and said they will put Realtors out of business.... we were sleeping at the wheel the only salvation was that the Internet was new.... now I am not sure we can dodge a bullet unless we jump on it right away, technology is moving at lightning speed...Endre

Jan 24, 2019 03:56 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jan Green  sounds like you are a perfect candidate to write about your experiences and share with us. Endre

Jan 24, 2019 05:59 PM
Jan Green - Scottsdale, AZ

Not sure I'd like to win this "contest" but I keep running into these listings and processing these.  It's been an interest road!

Jan 25, 2019 08:06 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick Vandekar, 610-203-4543  there is so many new platforms on the Residential Side and they are making inroads on the Commercial Side too, Endre

Jan 24, 2019 06:01 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron and Alexandra Seigel  so glad Beth Atalay  mentioned this post and you stopped in, yes agreed there are many like W.C. Fields described:)Endre

Jan 24, 2019 06:40 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Endre, after reading your post and some of the comments, traditional real estate professionals are facing yet another challenge if we plan to stay in business. I was totally shocked while speaking with a new first time home buyer, that there was a new App called Open Door that allows buyers to view homes without an agent. How scary, even if they can tract who enters. I had no idea about "Knock". 

Jan 28, 2019 01:55 PM
PeterMark SEO
PeterMarkSEO - Holiday, FL
Real Estate Technology, SEO Web Development

Interesting posts, thanks for sharing. So knock's trade in program, knock will help me find my new home first and buy it with their cash. I move into the new home before they list my current home for sale. Good luck with that.

 

Are they leveraging the expertise of a local pro? Or is this a numbers scheme where they profit big by taking advantage of the seller's lack of exertise and know how. They bought an expired domain for $100K and they think they can run with this?

 

I don't believe this business model will work in many markets for many reasons.  It requires local expertise, know how to do these transactions. Second the brand name has a negative connotation. Website coding they have is a joke. 

Feb 20, 2019 02:32 PM