These new-fangled real estate start-ups are popping up like weeds now, and these guys are pushing alternative facts to justify their 6% program. Who takes 15 to 35 percent of the sales price? If they sell a house above the list price, they take 10% of that too?
http://finance.yahoo.com/news/knock-secures-32-5-million-140500970.html
Knock is an online home selling platform that provides homeowners a guaranteed way to sell their home in six weeks or less without risk, stress and uncertainty. Launched by founding team members from Trulia.com, the company uses data science to price homes accurately, technology to sell homes quickly and a dedicated team of professionals to guide homeowners through the selling process. Knock ensures a simple and certain process by guaranteeing the sale of its listed homes or it will purchase the home at full market value.
Rolling out across Metro Atlanta as its launch market with plans to expand nationally in the coming months, Knock is fundamentally changing the real estate industry by leveraging technology to sell homes in six weeks or less, guaranteed. This is made possible through the company’s use of data, including a home pricing algorithm, neighborhood analysis and its proprietary 200-point on-site inspection to ensure homes are priced right the first time. In addition, it offers a Knock Home Certification and an extended warranty, to further increase the home’s value while delivering a painless home selling experience to homeowners.
Unlike old school and new online home flippers that take 15 to 35 percent of the sale price, Knock is the only online home selling platform that provides homeowners a guaranteed way to sell their home at market price in six weeks for the same six percent as a traditional listing. Knock provides homeowners additional pricing assurance via a rebate offer. If the company purchases a home and sells it at a higher price within 45 days, it will rebate 90 percent of the difference back to the homeowner. Finally, by bringing the process entirely online, from paperwork to scheduling repairs and showings, Knock empowers sellers to manage it from any device, anywhere.
“We strongly believe that homeowners should not have to give up a significant percent of their home’s equity and their personal time to ensure a quick and painless move. Our platform is available for the same fee as one would pay a traditional real estate agent, with the added benefit of total transparency and a sales guarantee,” shares Jamie Glenn, co-founder and COO of Knock.
Read full article here:
http://finance.yahoo.com/news/knock-secures-32-5-million-140500970.html
Two in one day! With the obligatory bashing of realtors too – calling the commission, ‘massive’.
https://techcrunch.com/2017/02/01/goldenkey-raises-1-75m-as-it-works-to-unbundle-the-real-estate-industry/
With all these duplicate apps/websites/etc, it’s almost like we’re in another tech bubble! Where businesses make zero profit, yet are valued in the billions!
Deja vu?
And they all point to their tech experience as to why they are going to make a killing in real estate. I wonder if they figured out the $100 million in advertising yet?
No need to worry, Trump will fix this. Just like he is going to make coal relevant again in the face of battery technology coupled with wind, solar, and wave technology.
And while we are at it, Smartphones are all made in Asia, remember the good ‘ol days, when flip-phones were manufactured right here in Schamburg Illinois by Motoroala. We will just slap at 20% tax and fix everything and go back to 1995. I always loved the Motorola startac flip phone.
Bill Gates the epitome of a “Nerd” will soon become the worlds first trillionaire.
While I don’t think these Yahoos will be successful at least they’re trying. I seem to remember a couple of years ago when zillow first came on the scene all the traditional realtors laughed at them. Now those same people are giving zillow thousands of dollars a month for preferred treatment and leads.
Zillow didn’t come out of the gate taking principal risk on homes they were trying to sell. I hope these guys got to pocket some of the venture capital they raised, otherwise it will be a complete waste of everyone’s time.
Can Goldman figure out a way to let us short these horribly flawed business models?
I still have my Motorola StarTAC flip phone from back in the day! Oh the memories! 🙂
https://en.wikipedia.org/wiki/Motorola_StarTAC