Exposes its unique high-tech, high-touch lens on the market to empower home buyers and sellers through first-of-its-kind ranking of real estate listings
Knock, the first Home Trade-In platform, today announced the official release of Knock Deals: A first-of-its kind home search tool that allows consumers to search for homes on the market by Awesome to Awful deals as determined by its data science-driven ranking of listings. Knock Deals factors in multiple proprietary algorithms that predict each listing’s final sale price and when it will actually sell to apply a ranking to the quality of the listing price, and allow users to search listings by those rankings. These rankings inform buyers if a home is an Awesome Deal they should act on now, or an Awful Deal they should wait out.
“Knock’s proprietary predictive algorithms are the foundation of our Home Trade-In platform because they enable us to determine the right listing price and estimated time to sell for each customer’s previous house, as well as help them get the best possible deal on their next home,” said Sean Black, Co-Founder and CEO of Knock. “We are excited to expose this intelligence to consumers, empowering them to make more informed decisions not only about their new home purchase, but also how to realistically price their existing home.”
The Knock Deals ranking provides consumers with a first-of-its-kind, curated lens on the market. In addition to traditional factors like number of bedrooms and price range, Knock’s home search tool allows users to filter by the ranking: Awesome, Good, Fair, Poor or Awful. As of August 2018 in Atlanta for example, 80% of Knock’s predictions were within 4% of the final sale price, while 50% were within 2.5% of the final sale price. Comparatively, original list prices only came within 4% of the final list price 50% of the time, and within 9% of the final list price 80% of the time.
Whether the consumer is a buyer or seller, Knock Deals rankings empower them with knowledge previously only held by real estate agents. Depending on when they’re looking to buy, this new lens will help them act quickly or plan for future purchases. As a seller, the consumer gains a realistic picture of what their home is worth and why to better inform them in conversations with their agent and potential buyers.
“Knock is on a mission to bring greater certainty, convenience and cost-savings to the real estate transaction,” said Jamie Glenn, Knock’s Co-Founder and COO. “From a product perspective, that means developing tools that create more transparency and efficiency for the consumer, saving them time, money and stress. Knock Deals is a shining example of that.”
Knock’s predictive algorithms are machine learning-based and factor in hundreds of data points to determine final sale price of the home, future days on market and the likelihood that an active listing will have a price change within the next 14 days. This data includes the property’s current list price, comparable homes for sale, seasonality and recent and historical sales transactions, as well as proprietary Knock home inspection data.
Additionally, the algorithms are influenced by the real life actions of real estate agents in an area over time; for example, if an agent has historically priced homes high and then made multiple price reductions over time. The algorithms also learn constantly from the real-life inspections and pricing decisions of Knock’s Licensed Local Experts, or full-time salaried agents, about factors like the most comparable home sales and how upgrades and unique features of the home affect its sale price.
Knock Deals is an important new tool in the consumer-friendly platform the company is building. It provides real-time transparency into the predicted sale price of listings currently on the market and when price changes will occur, making it a dynamic, immediately useful tool for home buyers, as opposed to a feature highlighting the estimated market value of each and every home. Knock already offers the first-ever Home Trade-In, and ultimately aims to create more fluidity in the market, which will help to balance out inventory and prices and provide more people with the flexibility they’ve come to expect today, without having to give up on the American Dream of owning a home.