On this web-site, I often write about homes that are expensive for the area. But one of the draws of South Bend is that it doesn’t have the housing prices of Boston or San Francisco… there are homes available at almost every price point from $5,000 to $2,000,0000.

As you would expect, most homes at the lowest price points have flaws. But there are exceptions. Notably, non-profit agencies can offer surprising deals. And the Near Northwest Neighborhood Association is one that does.

The Near Northwest Neighborhood Association works only in a defined location, but offers what might be the best homes for the price available in or near South Bend. There is a catch – to buy the homes you have to meet income guidelines which are currently $14,500 to $38,650 for a family of two. The homes also carry deed restrictions so when you sell one, your buyer must meet the income guidelines in place at the time of the sale. Finally, you must live in the house – you can’t buy it and rent it out.

The Near Northwest Neighborhood Association rehabs several homes each year, and sells them below cost in an effort to draw long term residents to the neighborhoods. They do nice work and go far beyond carpet and paint; the homes have new mechanicals, new windows, tile and wood floors and updated electrical service. Graduate students often qualify for the homes, and more than a few of the rehabbed homes have sold to families furthering their education at local institutions.

Currently, the Near Northwest Neighborhood Association has five homes for sale in their boundaries:

My pick of their current batch for sale is 508 Lindsey. It has four bedrooms plus an office and is across the street from a firehouse that has been converted to stage for the South Bend Civic Theater. It also has the shortest period with deed restrictions, which last five years at this house. The other homes have 15 year deed restrictions.

The homes are in an urban setting and won’t work for everyone. Some don’t have garages and others are next to less attractive homes. But they are generally large homes in excellent condition. They are also priced low enough to raise eyebrows. Students who don’t want to remain sequestered near campus might do well to consider them.

It’s sunny and clear in South Bend today, beautiful really. I went for a run for the first time in ages.

At Realst8.com we often work with people moving to the area who want to be near Notre Dame. That is on the north side of the city, so they select homes there, or in nearby Granger.

But, looking around as I gasped for breath, I was reminded why I’m partial to the south side of South Bend. I brought a camera and snapped its shutter a few times. These images are from Ridgedale, a neighborhood of older homes with one or two new ones and Erskine Manor, a neighborhood of newer homes with one or two older ones.

If I were in better shape, I’d have continued to Topsfield and Deer Run, or even Stonehedge and New Road.

If you are considering a move to the South Bend area, I’d encourage you to keep an open mind and look at all your options. Unless you want to be walking distance to a specific spot, the difference between getting in a car and driving one mile or driving five miles is trivial. South Bend traffic isn’t bad.

If you look a bit off the “beaten path,” you might find options that surprise you.

A quick real estate search on ebay today turned up two South Bend homes for sale. Buyers, do your research. If you are seeking a South Bend investment property, you could see prices as different as $9,000 and $50,000 or $1,025 (auction bid) and $47,900 for the same property.

Here are the stories on the South Bend homes for sale on eBay on September 23rd, 2009.

340 Scott Street

A bit of digging reveals 340 S. Scott has a lengthy history in the MLS. It was listed 2/28/2007 for $47,900. After going through three Realtors, it dropped off the MLS on 3/18/2008. It was listed for $18,900 at that time.

It is now listed on a real estate web-site at $38,500 as well as on ebay with no reserve, a current bid of $1,025, and a plain-spoken note that

“It was bought from a bank as-is, where-is, no disclosure, no guarantees, no survey, or inspections and we are selling the same way. We have limited knowledge about the property condition other then what is shown or stated so please don’t ask “how’s the furnace and the roof”, we don’t know.”

The seller’s phone number is out of Dallas.

721 Rex Street

Listed for $50,000 7/1/2008. Expired unsold 1/1/2009. Apparently foreclosed and listed by the bank on 8/28/2009 for $9,000. pended on 9/14/2009. It is still “pending” in the MLS, so the sales price isn’t yet available. It could have closed and not yet been entered into the MLS or it could be the seller is advertising it before s/he actually owns the property. The starting bid on its ebay listing is $11,500.

The disclaimer on this auction is more legal:

Property sold “AS IS” As a material part of the consideration for this Agreement, Vendor and Purchaser agree that Purchaser is taking the Property “AS IS” with any and all latent and patent defects and that there is no warranty by Vendor that the Property is fit for a particular purpose…

The seller’s phone number is out of Eastern Kentucky.

Buyers, beware. Just because a price seems low doesn’t necessarily make it a wise purchase. You’d be well served to learn the South Bend market before parting with your money, or to find a local specialist to advise you and act on your behalf.

Tomorrow, or possibly Sunday I’ll post the comprehensive monthly sales report from the South Bend Area MLS.

But today was beautiful and I spent some time in one of my favorite South Bend neighborhoods, Ridgedale.

Ridgedale is a leafy neighborhood on the south side of South Bend. It has distinct architecture and according to tax records, various sections of the neighborhood were built from the 1920′s to the 1970′s. This fits with what I found at the local history section of the library, where maps of South Bend from 1903 don’t show anything in the area, and maps from 1937 have the neighborhood streets plotted.

Homes vary from under $100,000 for a smaller home to well over $1,000,000 for some of the palatial estates. Architecturally the neighborhood has everything from steeply pitched French influenced designs to one of just two  Frank Lloyd Wright designed homes in South Bend. It also has two things in abundance that are rare in the area: slate roofs and steep hills.

Here are a few homes and sights that caught my eye:

If you want to see more of South Bend’s Ridgedale neighborhood (and you aren’t prone to motion sickness), you might watch this rough-cut video of a bike ride through Ridgedale. Forgive the lack of polish, this is our first attempt at adding video to the blog. We”ll refine our technique, edit in still photos and interviews, and add music and subtitles to future videos.

If you’re moving to South Bend and want to know more about Ridgedale and other neighborhoods with historic character, contact a realst8.com agent. If you have a home in Ridgedale you want to sell, you might want to do the same.

“There’s no such thing as bad publicity,” but South Bend’s profile in the New York Times as a case study in foreclosure gone wrong doesn’t paint a rosy picture of the city.

Readers could easily get the impression that every house in South Bend looks like this one, which is bank owned and listed for sale at $9,000. 

But that’s simply not true. While there are homes that are beyond repair and which people fight not to own, there are also rehab opportunities, affordable homes in good shape, and luxury homes that would please most anyone. South Bend is a city with 105,000 people and 46,000 housing units. It has the expected range of housing.

Here are twelve more homes with South Bend addresses. They also aren’t typical for the city, but I think they effectively counter the notion that all South Bend homes are in disrepair. 

It’s time to enjoy great weather and great tunes. Check out the schedule of bands, days, and times below. There’s something for everyone.

Meet Me On the Island – Century Center, Island Park
Admission: $5; children under 12 free
July 3, 5:00 – 10:30pm – Clifford & Michaels Blues Band
August 29, 5:00 – 9:30pm – Darryl Buchannan
September 19, 5:00 – 9:30pm – The Whistle Pigs

Fridays By The Fountain, near W Colfax and N Michigan Streets
Admission: free
June 27, 11:30am – 1:30pm – John Sapen Band
July 11, 11:30am – 1:30pm – Little Frank & The Premiers
July 25, 11:30am – 1:30pm – Everyday People
August 8, 11:30am – 1:30pm – Kennedy’s Kitchen
August 22 11:30am – 1:30pm – Half-Pint Jones

Rooftop Rendezvous, near E Wayne and S St Joseph Streets
Admission: $7.00
June 21 , 6:00pm to 11:00pm – Driving Reign
July 12, 6:00pm to 11:00pm – Live Wire and Ruin Hayes
August 16, 6:00pm to 11:00pm – Vyagra Falls
September 20, 6:00pm to 11:00pm – Soul Funkshun

Beutter Park Thursday Concert Series
Admission: free
Jun 5, 6:30pm – South Slope Cut Throats
Jun 12, 6:30pm – Steve Foresman Band
Jun 19, 6:30pm – Driving Reign
Jul 3, 6:30pm – South Side Denny
Jul 10, 6:30pm – Soundwave
Jul 17, 6:30pm – FBI – Funky Blues Intuition
Jul 24, 6:30pm – High Life
Jul 31, 6:30pm – Last Call
Aug 14, 6:30pm – Vehicle
Aug 21, 6:30pm – Jason Sapen Band

Sundays at East Race / Seitz Park
Admission: free
June 22, 1:00pm — Celtic Fest and Kennedy’s Kitchen
June 29, 4:00pm — Dry Flood
July 6, 2:00pm — Comcast Day featuring: Jetta & the Jelly Beans, The Whistle Pigs, South Side Denny, Ruby Jazayre, and the Sisters of the Nile
July 13, 4:00pm — Zonnix The Band
July 20, 4:00pm — NIPSCO Day featuring: This End Up, LD Swygg Band, Jetta & the Jelly Beans, Leonardo
July 27, 4:00pm — Los Hermanos Bueno
Aug 3, 4:00pm — Soul Riders
Aug. 10, 4:00pm — Soul Funkshun

This spec (builder owned) home in Deer Run on South Bend’s south side has been on the market since February 2007. It has been reduced in price from $2.3 million to $1.85 million and the builder is offering to throw in a $50,000 pool. Here is the MLS marketing description:

Incredible builder spec in deer hollow on 6 acre lot. Incredible detailing throughout w/numerous built-ins, incredible trim work, incredible ceilings! Main floor all brazilian flooring & ceramic. Incredible master suite-bath with roman steam room/shower,seperate morning areas,screen porch. Granite kitchen w/sub zero fridge – approx 400 sq ft, 2500 sq ft of bsmt finish w/theater area, second kitchen, 5th of 6th bdrm, 5th full bath, family room. Truly one of a kind. Builder offering $50,000 swimming pool allowance w/accepted offer.

It seems to me that the most remarkable thing about this property is a price reduction of half a million dollars, and still no takers. Do you think this is a good deal or was the builder dreaming when he priced this home at $2,300,000 at the beginning of the biggest downturn our market has seen since the early 80’s. In today’s market, to buy this home at $1,850,000 with $185,000 down payment, the purchaser would need an income of around $450,000 a year assuming no debt besides a home. The payment on a 30-year fixed rate of 6.375 % is $10,387/month before taxes and insurance.

With examples like this how is a consumer supposed to know if they are getting a fair deal. How would you feel if you bought this home a year ago for $2.3 million and your neighbor bought one just like it today for $1.8 million. How do you know what to offer? How do you know what’s fair? The best way to develop a negotiating strategy is to:

1. Assess the current economic situation in the market. Is it a buyer’s market, a seller’s market, or a balanced market?
2. Research the development carefully. Is it viable? Is it in demand? Is there current activity?
3. Find out what comparable homes sold for in the last 18 months, 12 months, 6 months in order to see price trends.
4. For new construction, determine the sellers financial health if possible. If it’s a spec home, have the sub-contractors been paid? Is the lumber bill current? Are there any liens filed on the property
5. Be willing to walk away from the deal. In today’s market the buyer who is willing to walk away from an unreasonable seller holds the power in the transaction. Know the price at which a house stops being a bargain and at which you are willing to move on to the next property.

If you’d like innovative professionals to look out for your interests courteously yet assertively as you buy or sell property in South Bend, Granger or Mishawaka, we’d like the chance to earn your business. Please contact us for a consultation.

I was talking to my “web 2.0 colleagues” about the high cost of housing on the west coast today and I had an epiphany… I should start marketing to people across the country whose employment is not location dependent that want a great home at a ridiculously low price in a decent Midwest city that has a great university, a multitude of other educational opportunities and is 45 minutes from the white sand beaches of Lake Michigan and only 90 minutes from the center of one of the worlds great cities – Chicago. How do I do this? I wonder what I can do with a targeted blog?

A few years ago I sold a home to clients relocating for exactly the affordability reasons mentioned above. They had a home in the Bay Area that backed to a freeway. They had lived there for 20 years or so. He is a high school teacher, she was a librarian and they have 4 kids. They are a nice family, and despite being very frugal, at the end of every month they struggled to make ends meet.

They sold their modest home in the Bay Area for around 800k, and bought an extremely nice 3,500 square foot home built in 1992 in a great neighborhood on a huge lot with additional space in the finished basement for 315K, paid off all their bills, put around 400K in the bank. Now, their kids are in private schools, he is a religion teacher at a Catholic High School, and she is a stay at home mom. Their lives have improved dramatically.

The South Bend Common Council passed an ordinance designed to lessen the negative impact of vacant and abandoned homes in the city. It requires the property owners to register habitually vacant or abandoned properties with the city, pay an annual fee, maintain liability insurance, and designate a property manager in the area.

According to WSBT, “The city’s code enforcement department says there are more than 600 vacant homes across the city.” The census bureau, however puts that figure at 7,981 homes. South Bend’s Housing and Community Development Plan includes a map of the county coded by vacancy rate.

If signed by Mayor Leucke, the vacant property rules will be effective January 1st.

The ordinance is available here, South Bend Tribune’s article here.

Larger cities have official, or at least commonly recognized neighborhood boundaries. Chicago for example, has 77 often mapped neighborhoods. South Bend also has neighborhoods, but there is a lot of confusion about what and where they are.

In an attempt to start a discussion, and create a map of neighborhoods in South Bend,