SIOUX CITY, Iowa (KCAU) — Many people may be seeing these types of “We Buy Homes” signs around Sioux City, but might wonder how the process of buying and selling homes with cash works.
Selling houses on contract has always been a thing, but in recent years, with the home-renting market the way it is, this type of business is growing in popularity across the country, especially among people who are looking to buy a home but don’t want to go through the time-consuming process of working with a traditional real estate agent and mortgage lender.
Chris Treiber is the co-owner of Sioux City’s “We Buy Homes For Cash” and “We Sell Houses on Contract” and explained what the purpose of his business is.
“We serve as the bridge to finance the purchase of the home until the buyer can meet the qualifications of the local lender and at that time we allow the buyer to work with the local lender and we step out, no penalty,” said Treiber.
With record-high rental rates, Treiber said there’s a need for this type of business model in Siouxland.
“There’s just so many families forced to rent right now that would love to buy and we want to keep these families in our community. We want to give them a place they can call their own and experience the American dream if you will,” said Treiber.
President of the Iowa Association of Realtors, Byron Menke, said through the 25 years he’s been in real estate, he’s never seen this much of a seller’s market and that it’s partly because of what programs like Treiber’s are doing — adding convenience for sellers by eliminating agents and banks’ involvement —but for a sizable discount.
“You might feel good about yourself at first. You know, ‘I had somebody call me and I didn’t have to pay all those closing fees and I didn’t have to pay that realtor a commission and then my neighbor down the road ended up with 30 thousand dollars more than I did,'” said Menke.
Treiber said so far, none of his clients have defaulted on their housing contract and hopes to continue providing opportunities to potential homeowners across Siouxland.