Home Swap service lets owners buy a new house first, then sell their old one – OregonLive

The low level of homes for sales in the Portland area favors sellers. That is, until those sellers want to buy a replacement home.Elliot Njus/Staff
The low level of homes for sale in Oregon favors sellers. That is, until they want to move. If they put their existing home on the market and it sells fast, but they can’t find a new property, what can they do?
Renting the old place for up to three months can work, if the new owner agrees and the lender allows it. But at some point, the former owner is given the boot.
A different approach for people fearful of not finding another place to live: They can borrow a down payment for their next home from relatives or retirement funds before listing their old property.
More first-time owners rely on down payment funds from family
Bringing buying power to those whose incomes have not faltered during the pandemic is an average 30-year, fixed-rate mortgage interest rate at 2.88%,
Here’s a new option: Knock Home Swap “pre-funds” homeowners for a mortgage so they can make an offer on a new home that is not contingent on selling the old one.
The Home Swap service includes a bridge loan that covers the down payment on the new home as well as money to fix up the existing home to sell it and up to six months of mortgage payments on the old house.
Owners can move into their new residence, prepare to list their old one, and not have to make two mortgage payments.
“Many homeowners who would like to move have felt trapped in their home,” said Drew Coleman, principal broker of the Drew Coleman Team at the Hasson Company. “Knock Home Swap program solves this problem.”
Knock is not an instant buying service, commonly known as an iBuyer, which purchases off-market homes and quickly list them for sale after making light repairs and updates.
Knock is a mortgage originator that charges a 1.25% convenience fee on the purchase price of a new house or condo. Consumers work with their own agent to buy a replacement home and then list and sell their current home.
Leslie Hilbert, general manager of the Xperience Brokerage Network, said clients can also avoid the anxiety of making a less-than-desirable contingent offer, the stress of coordinating two closings and the hassle and expense of moving twice.
Hilbert’s network includes Keller Williams Realty Professionals; Keller Williams Realty Sunset Corridor; Keller Williams Realty Capital City; Keller Williams Realty Eugene and Springfield; and Keller Williams Southern Oregon.
The Home Swap program, in 65 markets nationwide, is also available through Keller Williams Realty Mid-Willamette; Keller Williams Realty Portland Central; Keller Williams Realty Portland Elite; Soldera Properties; and Ross Seligman, Living Room Realty.
— Janet Eastman | 503-294-4072
[email protected] | @janeteastman
More on the Portland and Oregon real estate market:
These hot Portland homes sold for way over the asking price: One owner pockets $605,000 more than expected
• What’s the benefit of pricing a home at less than fair value? Bidding wars. The tale of twin townhouses
• ‘Really Tan Portland Ken’ puts glass mansion up for sale at $9,495,000
• The top five Portland-area zip codes savvy home shoppers are targeting might surprise you
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