Who Should Read EasyKnock Reviews in 2021?
EasyKnock is aimed at people who need to access their home’s equity value quickly and either can’t or don’t want to wait to sell it on the open market. It’s also a good option for someone planning to move at a later date and wants to sell their house in advance.
In a nutshell, EasyKnock’s primary offering consists of purchasing your home and then leasing it to you at market prices. It’s not a loan in any sense and therefore not subject to most of the requirements typical of loans.
Reviews of EasyKnock are quick to point out that you don’t need a credit check or evidence of income to apply. And that’s true, but the company still looks for reliable sellers and lessors.
Getting approved by EasyKnock will require that you own a significant portion of your home’s equity (typically at least 50%).
While EasyKnock funding works with a wide range of home values, it doesn’t consider homes valued under $100,000 or above $1,000,000.
Lastly, EasyKnock may work for you if you need to get through a difficult situation that you expect to bounce back from. EasyKnock gives you the option to repurchase your home for a price you agree to at the onset of your agreement.
What Is EasyKnock Sell and Stay?
EasyKnock is a residential sale-leaseback service company; it buys your home, gives you the proceeds — minus an option price — and then rents it back to you.
If that sounds like word salad to you, don’t worry. The company, and its concept, is relatively new, but you’ll grasp it fairly quickly.
Two experienced fintech executives teamed up to create EasyKnock in 2016 to bring the concept of sale-leasebacks into the residential space.
It’s still the only company offering residential sale-leasebacks in the US, so direct EasyKnock competitors are few and far between.
But that’s all a bit technical. As a customer, it may be easier to understand what EasyKnock is NOT.
EasyKnock is not a lender, bank, or another kind of loan originator. It’s a private company that buys your home outright and then rents it back to you with the option to repurchase it.
EasyKnock is also not a reverse mortgage provider. In a reverse mortgage, you remain the owner of your home.
Lastly, EasyKnock is not in the business of flipping homes. The company aims to own and rent single-family homes, and all its funding programs reflect that goal.
How Does EasyKnock Work?
You can use EasyKnock’s services in three ways, and in this EasyKnock review, we focus on the Sell and Stay program, but the information applies across the board.
Here’s what you’ll need to do:
1. Submit your information through the online form
You’ll start by choosing whether you want to stay in your home after selling it or you expect to move within the next 12 months. Then, you’ll be asked to input basic information about yourself and your location.
Next, you’ll need to provide information about your home, including the estimated value, your current mortgage balance, and how much funding you require.
2. Have a phone call where an EasyKnock rep reviews your case
Based on the information you provide, EasyKnock will contact you to discuss your goals and how it can help you achieve them. During the phone call, the specialist may ask for details about your home, so it’s a good idea to have your mortgage documentation on-hand.
3. Receive an estimate
The EasyKnock specialist will provide an estimate of how much money you’ll receive for your home, the option value of your home, and the rent amount if you choose to stay in the house.
4. Review the terms
You’ll go over the estimate again and get the opportunity to ask any questions or clear up any lingering doubts with your EasyKnock specialist.
5. Sign the purchase agreement
You will get a purchase agreement with the previously discussed terms and EasyKnock fees. Make sure everything is correct and sign it to begin the due diligence process.
6. Due diligence
EasyKnock will appraise your home, inspect it, and do a background check to ensure there aren’t any liens or clouds on the title.
7. Sign lease documents
If everything checks out, you’ll sign a sale agreement to complete the sale and then begin your lease of the property.
8. Transfer of title and funding deposit
A state-licensed title company will complete the title transfer, and EasyKnock will send you the money as agreed in the sale documents. Your lease starts as soon as the deposit is complete.
9. Stay, sell, or repurchase
At this point, what you choose to do depends on your agreement with EasyKnock. Sell and Stay reviews suggest it’s one of the best options, but you should do whatever makes sense for your financial situation.
If you choose to stay and rent the property, you can continue to do so as long as you like adhering to the lease agreement.
If you want to sell your home, you can pick a realtor or let EasyKnock pick one for you and sell the house.
EasyKnock receives proceeds from the sale equal to the amount paid you plus an annual premium; the rest of the proceeds go to you.
If you choose to repurchase the house, you can do so for the amount EasyKnock paid you, plus an annual premium.
Note that the option to repurchase is not available in all states. Discuss your needs with EasyKnock before you sign the sale agreement.
Review of EasyKnock Features
Above, we summed up the process to sell your home to EasyKnock. You’ll now learn about some of the key considerations to know before committing to EasyKnock.
Rates and Fees
EasyKnock generates revenue in three different ways.
- When you sell your home to EasyKnock, it collects a processing fee equal to 2.5% of the purchase price along with any closing costs.
- When you lease the home you sold to EasyKnock, it will charge the typical market value of rent determined by third-party data. Most EasyKnock reviews from customers indicate the company’s rent practices are quite fair.
- If you decide to repurchase your home, EasyKnock will collect the amount it funded you plus a 3% additional fee (on average) for every year you’ve leased the house.
As with any typical landlord/tenant agreement, the property owner is responsible for insurance and property costs during the lease term. EasyKnock fees also include a 2.5% increase or the consumer price index every year to your rent — whichever is higher.
EasyKnock is a relative newcomer to the real estate game. Still, it has succeeded in making an excellent impression, in part thanks to its superb service.
When you start the application process to sell you home, an EasyKnock specialist will contact you and guide you every step of the way. You won’t have to guess what anything means because a real, live person will be there to talk you through it.
One of EasyKnock’s biggest selling points is that it tries to build good relationships with its sellers. EasyKnock consumer reviews from multiple sources praise their expedient and helpful customer support.
If you have any questions or concerns, you can call EasyKnock’s toll-free number, 844-888-9213, or send an email to [email protected].
EasyKnock also has two office locations:
1213 West Morehead Street
Charlotte, NC 28208
|New York Office
215 Park Ave South, Suite 1713
New York, NY 10003
EasyKnock provides a free calculator that can help you estimate the proceeds of your home sale. It’s a good idea to start your journey with EasyKnock by using this calculator.
All you need to do is enter your home’s value, the balance remaining on your mortgage, and the cost of any other liens on your property. If EasyKnock purchases your property, it will clear any liens and deduct the value from your proceeds.
Now, you should keep in mind that the EasyKnock calculator only provides an estimate. But it can help you decide whether your house is worth selling or you should look for a better path to funding.
If the estimate is substantially less than the money you need, maybe there’s a better way to get funding. Likewise, if the estimate is much higher than your requirements, there’s a chance an installment loan might net you better results.
Privacy and Security
The only reason EasyKnock provides information about you to third-parties is to offer its services through those third parties. And reviews on EasyKnock generally don’t mention excessive spam or marketing material.
Nowhere in the policy does the company allow itself to sell your information or use it in ways you don’t consent to it being used.
What’s more, you can opt-out of allowing EasyKnock to use your information to contact you about goods and services before you complete your application.
EasyKnock promises to store any information you provide on encrypted servers using standard SSL protocols. EasyKnock doesn’t elaborate on the exact nature of the security, but it’s fair to assume it uses industry-standard security features.
If you want to try EasyKnock, and reviews are any indication, chances are you won’t be disappointed.
EasyKnock is a novel approach to accessing your home’s equity when you need it most. You’ll receive funding much faster than you would if you waited for the house to sell on the open market, and you don’t have to worry about a low credit score.
Yes, there are some fees to deal with. But they’re likely less than what you’d pay on a similar installment loan.
Pros & Cons
- Customized funding solution
- Provides 100% of your home’s value
- Excellent customer service
- You can stay in your home
- Funds are wired directly to your bank account
- Has the option to repurchase your home
- Covers property taxes and insurance during the lease period
- You are no longer be the owner of the property
- Not available in all areas
What is EasyKnock Sell and Stay?
EasyKnock buys homes and leases them to their previous owners through its Sell and Stay program. Here’s how it works:
First, EasyKnock buys your house at full market value, and you receive up to 70% of the cash upfront, minus your remaining mortgage. The contract allows you to stay in the house as a renter.
Then, you can move out at a later date and sell the house. EasyKnock receives the proceeds it paid you plus an annual fee for each year you were renting when it sells. Or, you can repurchase your home for the same price.
EasyKnock reviews generally favor the Sell and Stay program, but the company also provides a home transition program and a long-term lease option.
How much does EasyKnock Cost?
When you sell your home to EasyKnock, it will charge a transaction fee of 2.5% of the sale value. Moreover, you’ll shoulder the closing and title costs of the sale. Closing costs depend on your area, but EasyKnock collects closing costs equal to 1% of the appraised value.
When you sell your home or repurchase it, EasyKnock fees include a 3% premium of the sale value annually, on average.
Renting your home will cost the typical market price in your area as determined by third-party data. EasyKnock estimates rent for most customers will be at or around 0.75% of the home’s appraised value.
Is EasyKnock legit?
Absolutely. For proof, you don’t have to look any further than their A+ rating with the Better Business Bureau (BBB). And EasyKnock BBB customer reviews give it a 4.43 out of 5.
Although EasyKnock hasn’t been around for very long, it has quickly established a reputation for being reliable, trustworthy, and concerned with building a relationship with its customers.
Everything that EasyKnock promises it will do, you can pretty much hang your hat on. If there are any negative EasyKnock reviews out there, they are the result of people failing to grasp the specifics of the service.