The information below is particularly important to consider when purchasing properties in South Bend:
If you are interested in purchasing a vacant lot in South Bend, know that there will likely be a cost to get dormant sewer and water reconnected to the property.
In South Bend, the current average estimates for new construction can range from $150-200 per square foot. So, for example, if you are interested in building a 1400 square foot home, then you need to be able to sell or rent the new construction for at least $210,000. This does not include any of the associated costs with acquiring a property, getting sewer and water connected if it is a vacant property, or other costs.
If you have a specific purpose for the building in mind, make sure that property is zoned correctly for that purpose. Information on South Bend zoning can be found at https://southbendin.gov/department/community-investment/planning-community-resources/zoning/
If you purchase a property at the annual tax sale in September, there is a 12-month waiting period for the original owner to pay off the property taxes before you take ownership of the property. If the original owner does pay off the taxes, you will receive 10% added on to your original investment that the original owner also has to pay. Nevertheless, during the 12-month period, your capital is sunk and not available to be invested elsewhere.
- United Tax Sale Service will do all the legal and administrative requirements for a tax sale purchase for a fee. This is in addition to the $175 that it costs to legally file a tax certificate to tax possession of the property.
- If you purchase a property at the Commissioner Tax Sale in March, the property will only have a four-month redemption period but be aware that these often are the ones that did not sell at the September tax sale.
- At the Sheriff Foreclosure Sale, the properties move in 30-40 minutes and possession is immediate. The process is an auction (where the property is sold for what is owed on it or what the bank is willing to accept) but the qualities of the properties can vary widely. Be aware though that many of these properties can be put up for sale in exploitative ways through land contracts or by requiring little credit.
Think of the title to a property as anything and anyone who currently has a legal claim to the property. If the property was left as an inheritance to a family with multiple people, that can make it very hard to have a “clean” title because several people can have claim on it. You can use the MACOG GIS to determine who owns a property.
A title company can perform a search to make sure there are no liens, claims, or anything that you could be sued for with a property. If there isn’t anything, then that’s what makes the property “clean.” If the property has recently been sold, then it is very likely “clean.” If you purchase a title through a tax sale, then it will likely cost around another $400 to go through a title company or broker (like Meridian) to “clean” the title.
The most common environmental issues with a property in South Bend will be asbestos, lead, and old oil tanks. If the asbestos is limited, then it can be cleaned from a house fairly quickly. Lead is more challenging and costly but can also be fixed. Oil tanks are the most difficult and expensive. You will need to contact a local environmental consultant to help you to assess this.
We have just covered two possible ways that you can run into unexpected costs – through clearing the title and environmental issues. Another possible cost to look out for is the foundation of any existing building – check that it is sound and that there are no water issues.
- If the title, environmental, and foundation check out, then the next big costs will be HVAC, the roof, safety & security issues, and landscaping.
- We cannot repeat this enough: clean, clean, clean. First and foremost, make the outside look nice and appealing. People won’t even go inside if the outside does not look good. Then, for interior expenses like fixtures, install quality products that are simple and elegant. You will eliminate many potential buyers if you get too creative or style-heavy with interior design.
- Consider that smaller is often better; especially in lower-income areas. Think simple but good quality.
This toolkit contains a few proformas. A proforma is a document that allows you to estimate what the costs and income of the project will be. This is crucial for developing a property because a good proforma can help you to see if a project will be profitable and how much financing will be needed in order to complete the project. Again, the first rule comes into play here – do not fall in a love with a property because the proforma may show that the project will not work financially. If you can’t get the revenues, then you just should not do the project.
- Put together a personal financial statement. This will include any tax returns that you have for the past few years (personal and business) and a breakdown of all assets and liabilities. More information is included in the “Secure Financing” section.
- Credit scores are unfortunately part of this process, but they do not have to make or break your project. Consider participating in a credit repair course if this is a concern.
- When you have determined which banks are most likely to offer funding (again, see the “Secure Financing” section), start to build a relationship with one or two bankers. Many bankers want to help people get funding and improve the local community. It is the first loan that is hardest to secure. Once you have proven that you are professional and capable, future funding often just requires a phone call to that banker. So build relationships now! Contact firstname.lastname@example.org and provide specifics of your project so that he can help direct you to several credible financial institutions.
Lawsuits happen at the intersection of the trades. This means that if you are bringing in a lot of different workers to have to do something, then there is an increased chance of something going wrong. And if something goes wrong, no one wants to take responsibility to fix it which will mean that you have to take responsibility to fix it. Simpler is better.
- A building that is the most valuable is generally one that will stand the test of time, both in terms of construction and style. Think of building design not as making something super hip or contemporary, but like designing the “little black dress” or blue blazer. Approach the style with an eye to the timeless.
- If you are designing a commercial space, providing shelter, shade, or seating is ideal. Also include large signage (16”+) which is lit and high ceilings on the ground floor (15’ +). Natural light is appealing as well.
227 West Jefferson Blvd.
South Bend, Indiana 46601
In the news
City Announces Holiday Trash Schedule and End of Yard Waste Season
November 23, 2022 — The City of South Bend announces the upcoming holiday trash pickup schedule as well as the end-of-season schedule for yard waste. Trash ScheduleDue to the Thanksgiving […]
City to Resume Fall ReLeaf Program Tuesday, November 22
November 21, 2022 — The City of South Bend’s Fall ReLeaf program is scheduled to resume on Tuesday, November 22 after being suspended last week due to snow. With the […]
City’s Fall ReLeaf Program Suspended Week of November 14
November 14, 2022 — The City of South Bend’s Fall ReLeaf program has been suspended for the week of November 14 due to heavy lake effect snow over the weekend. […]
City Announces Trash Pickup Schedule for Week of January 16
January 13, 2023 — The City of South Bend’s trash pickup service will be delayed by one day during the week of January 16. City offices will be closed Monday, […]
City to Offer Free Christmas Tree Recycling
December 27, 2022 – The City of South Bend is offering free Christmas tree recycling for residents within city limits from Tuesday, January 3 to Tuesday, January 31. Christmas trees […]
City Announces Holiday Schedule for Trash Pickup
December 23, 2022 – The City of South Bend announces its holiday trash pickup schedule. Pickup will be delayed by one day each of the next two weeks. City offices […]
City to Offer Sign-Up Events for Utility Assistance Programs
November 2, 2022 — The City of South Bend has partnered with several community organizations to host a series of sign-up events to help eligible South Bend residents apply for […]
East Bank Trail & Leeper Avenue Bridge Repairs Completed Early
November 1, 2022 — The City of South Bend Public Works Department announces that structural repairs on the East Bank Trail and Leeper Avenue bridge have been completed earlier than […]
City Announces Traffic Alerts Starting Monday, October 24
October 24, 2022 — The City of South Bend Department of Public Works announces the following traffic alerts beginning Monday, October 24, weather permitting. Cleveland RoadBeginning Monday, October 24, Cleveland […]
City’s Fall ReLeaf Program to Begin October 31
October 24, 2022 — The City of South Bend’s Fall ReLeaf program will begin Monday, October 31 and will run through Monday, December 5. City crews will make two passes […]
North Shore Drive to Close Monday, October 24
October 21, 2022 – Beginning Monday, October 24, North Shore Drive from Parkovash Avenue to Iroquois Street will be closed for crews to install a guardrail. Detour routes will be […]
Repairs Underway for Water Main Break on Cleveland Road. Boil Water Advisory Issued for Customers Northeast of South Bend.
October 13, 2022 — Early this morning, a water main break occurred on Cleveland Road between Twyckenham Drive and Nadine Street. City of South Bend Water Works crews are currently […]
City to Resume Water Shutoffs in December
October 4, 2022 — The City of South Bend will resume water shutoffs for delinquent accounts starting in December 2022. Water shutoffs and late fees have been paused since March […]
East Bank Trail & Leeper Avenue Bridge Repairs to Begin Monday, October 3
September 30, 2022 — The City of South Bend Public Works Department announces that structural repairs on the East Bank Trail and Leeper Avenue bridge will start Monday, October 3. […]
City’s Utility Assistance Program Expands to Include Tenants
September 29, 2022 — The City of South Bend has expanded its Utility Assistance Program to now be available to both homeowners and tenants. Tenants applying for the program must […]
Ireland & Ironwood Intersection Paving Scheduled for Wednesday, Sept. 28
September 26, 2022 — Paving of the Ireland Road and Ironwood Drive intersection is expected to begin on Wednesday, September 28, weather permitting. The intersection will remain open during paving […]
Portage Avenue to Close for Paving Monday, September 26
September 23, 2022 — Beginning Monday, September 26, Portage Avenue from Yukon to Scott streets will be closed for paving. Detour routes will be in place from 6:00 am to […]
Miami Street to Close Wednesday, September 21
September 20, 2022 — Beginning Wednesday, September 21, Miami Street from Ewing to Donmoyer avenues will be closed for crews to pave the worst sections of the street in this […]
Midseason Update on Street Paving
September 15, 2002 — The City of South Bend’s Department of Public Works is issuing a progress report and update on the 2022 street paving and repair work. Paving work […]
City to Begin Hydrant Flushing
September 13, 2022 — The City of South Bend will begin flushing fire hydrants this week as part of routine maintenance of its water distribution system. This annual program is […]
Western Avenue to Close Tuesday, September 13
September 12, 2022 — Starting Tuesday, September 13, both the eastbound and westbound lanes of Western Avenue from Mayflower Road to 300 feet east of the intersection will be closed. […]
City Announces Traffic Alerts Starting Monday, August 22
August 18, 2022 — The City of South Bend Department of Public Works announces the following traffic alerts beginning Monday, August 22, weather permitting. State Road 23 (August 22 to […]
City Offers Free Water Testing for Lead and Copper
August 3, 2022 — The City of South Bend Department of Public Works is inviting residents to be part of its sampling pool to test for lead and copper in […]
City Accepting Applications for 2022 Lamppost Lighting Program
July 11, 2022 — The City of South Bend Department of Public Works is now accepting applications for the 2022 Lamppost Lighting Program, which assists homeowners with lighting enhancements in […]
Paving Colfax Avenue Begins Monday, July 11
July 8, 2022 — Starting Monday, July 11, Colfax Avenue from Eddy to Esther streets will be closed for milling and resurfacing. Colfax Avenue will be paved in two phases: […]
City Announces Trash Pickup Schedule for Week of July 4
June 30, 2022 — The City of South Bend’s trash and yard waste pickup service will be delayed by one day later than normal during the week of July 4. […]
Final Phase of Olive Street Pavement Project Begins Monday, June 27
June 17, 2022 — The final phase of construction for the Olive Street Pavement Replacement Project is expected to get underway Monday, June 27. The project includes the replacement of […]
City Announces Trash Pickup Schedule for Week of June 20
June 16, 2022 — The City of South Bend’s trash and yard waste pickup service will be delayed by one day later than normal during the holiday week of June […]
City of South Bend Trash Schedule for Week of May 30
The City of South Bend’s trash and yard waste pickup service will be delayed by one day later than normal during the holiday week of May 30 through June 3. […]
City Announces Additional Streets for 2022 Paving
May 23, 2022 — The City of South Bend’s Department of Public Works has secured additional funding for paving through the South Bend Redevelopment Commission. Public Works received $3.55 million […]