Today’s RealTrending features an interview with Sean Black, CEO and founder of Knock.com, a company that offers cash-backed buying and consumer financing to offer consumers options when buying and selling a home. Black discusses his partnerships with brokers, their desire to help consumers and opines on the transaction revolution as the next phase of disruption in the real estate industry.
Here is a small preview of today’s interview with Knock.com’s Sean Black. The transcript below has been lightly edited for length and clarity:
Tracey Velt: I want to talk about this new move to all-cash buyers. I’ve seen an explosion of companies recently that are moving to that model, or building that financing model. Talk to me in general about that trend, and why it’s so important.
Sean Black: We started this buy before you sell. Look at Trulia and Zillow. They ultimately became the Zillow Group. We democratized the process for buyers. Now, if you think about now versus 2005, buyers have a lot more information. Agents don’t have to handhold buyers and educate them as long as they used to, because the consumer has a lot of that power at their fingertips. Sellers really didn’t benefit from any of that. They, in fact, still pay what we predict is about a hundred billion in commissions this year, without any more transparency, any more convenience, and any more control.
We think what’s happening now is the transaction revolution. How do we get into the transaction in a way that opens it up for consumers? Again, there are two approaches to doing it. One, is we are a lender. We can give the consumer a new mortgage on a new home at a competitive rate, before any other lender in credit, including the big banks or large mortgage companies, because we use data science and technology to figure out and underwrite their old home. All we’re doing is giving you your new mortgage before anybody else would. Giving you the equity out of your old home in the form of an interest-free loan to make the down payment on the new home, and get out of the old one quickly.
RealTrending features the brightest minds in real estate. Twice a month, brokerage leaders, top agents, team leaders, and industry experts share their success secrets, trends, and lessons learned navigating this ever-changing industry. Hosted by Tracey Velt and produced by Elissa Branch.