Startup Knock Bets Homebuying Can Be More Like Trading in a Car
Summary
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. Opendoor, which has raised billions of dollars for its algorithmic approach to flipping homes, has partnered with homebuilders to buy houses from people moving into new construction. The new fundraising round, led by Boulder, Colorado-based Foundry Group, comes at a time when a slowdown in housing is providing a new test for Knock’s proposition. Tight supply pressures buyers to move fast and marshal cash offers -- giving them a reason to choose services like Knock.