Knock is a real estate company that is considered to be a part of the up and coming "PropTech" realm. Knock is in the business of buying and selling homes over the internet (often considered "iBuyers"), making the process quick and seamless for both parties during the arduous home buying process.

Knock was founded in 2015 by Sean Black and Jamie Glenn. Sean, the CEO, has a long history of working in the tech industry as his resume boasts the likes of Trulia and SalesCrunch (who was acquired by ClearSlide). Knock's COO, Jamie Glenn, has an equally impressive resume with history at Yahoo!, Trulia, and JobVite.

With two industry leaders at the helm, it's easy to see why and how Knock got started. Buying and selling a home is a long and complicated process, often eased by real estate agents and their respective company. Even with help from an agent, ownership, loan, and contract paperwork can pile up. Sean and Jamie saw a problem, and presented their solution, Knock.

In January 2019, Knock completed their Series B round and amassed an impressive $400 million. The funding came from VentureCapital groups and individuals alike, including FoundryGroup and Great Oaks Venture Capital.

According to Knock's mission statement:

Homeownership is the symbol of the American dream, but ironically it is often what holds people back. Our home is our largest purchase and most valuable asset, but it is also the most difficult to buy and sell. Traditional U.S. residential real estate is complex and outdated, making it stressful, expensive and time-consuming for the average consumer to buy and sell homes.

Knock's goal is to make home buying more managable for those that are also trying to sell a home. Often times life inserts itself into already complicated process', people need to move homes quickly due to various reasons, leaving their current place empty and unsold. The masterminds at Knock gave the thousands that struggle with this an easy solution, tell Knock which home you want to buy and they will purchase your new home in cash.

What sets Knock apart from other 'iBuyers' is that they are not technically an iBuyer. Knock does not purchase your home from you like other similar companies, instead, they buy your new home, repair and sell your old, then transfer the new deed into your name once your old home has sold. By being a third party and holding the ability to purchase a home in cash, Knock is considered a "non-contingent" buyer. This means they can often get their clients a discount on the home that they otherwise wouldn't be able to receive.

Knock boasts an algorithm that will "sell your home in less than six weeks, even if Knock has to buy it". However, their secrets appear to be closely guarded. The aformentioned "algorithm" pulls public data on homes and uses it alongside extra info from the owner to provide them with a "narrow" price point. This allows people to know exactly how much thier home is worth, saving loads of money and time. What platform their algorithm runs on, however, does not appear to be publicly available knowledge.

The pioneers of the PropTech and iBuyer industry have thrived on new technology and algorithms that make renting or purchasing real estate cheaper and easier for their clientele. Phone apps, websites, and state of the art code allow potential home buyers or real estate investors to have up-to-date and trustworthy prices and property data at their fingertips.

The major players in PropTech vary in size and scope, but nonetheless, are revolutionizing the real estate industry. Companies like Opendoor and Offerpad are the other major companies in the iBuyer landscape, making offers on homes across the country and helping people move into a new one. Bowery Valuation uses their platform to provide their customers with the most accurate appraisals available. And many others provide solutions in areas of a wide spectrum, from subletting and renting to office spaces. If there's a problem in the real estate industry, a PropTech company will find a more efficient solution.

PropTech companies have put traditional real estate companies on their toes. The iBuyer industry has already disrupted a multi-billion dollar home market, and Knock has taken it a step further. While not considered a leader in this industry just yet, Knock is still making plenty of noise as a relatively new up-and-comer. With an estimated yearly revenue of $55 million, their model of trade-in homes, similar to car buying, appears to be appealing to prospective customers.

The main issue that arises with iBuyers is the ability to expand their market at a rate high enough to match the demand for their product. Expansions are not as simple as they may sound as an algorithm for one city or area of the country may differ from that of another city. Due to this, iBuyers are in a race to introduce their product first to the biggest markets. Knock has done a great job of expanding their market share, offering their services in 10+ cities on the east coast and across America.

As previously mentioned, Knock is not the biggest company in this industry. Their market share does not yet compete with the likes of Opendoor. But, Knock is still new, and growing rapidly. According to their CEO and previous founder of Trulia, Sean Black, things are moving much quicker than any other company he has worked for. Sean expects "...there will be five new companies in five years", a bold, but seemingly realistic, outlook for his company and the future of the industry.

In my opinion, giving control of most peoples largest asset to a company without getting full control of the new home until that company has completed its job may be a bit too much uncertainty for most buyers. Not knowing how much they will charge for any repairs to the old home, or when/if they will be able to sell it, may discourage potential customers from using the product. A nice addition to their model may be to have the ability to go through their normal process but instead of Knock owning both the new and old homes, set the customer up with a traditional mortgage. Doing this would allow people to 'trade-in' their home but garner full control of the new house immediately after move-in. I believe this would ease many customers minds with so much at stake.

By offering this option, Knock could partner with other FinTech companies in the mortgage industry such as SoFi and QuickenLoans to provide their customers with the best options moving forward.