Midwest Stats

First, let’s take a look at what states make up the Midwest. According to Roofstock, these states all fall in the Midwest region:

• Illinois
• Indiana
• Iowa
• Kansas
• Michigan
• Minnesota
• Missouri
• Nebraska
• North Dakota
• Ohio
• South Dakota
• Wisconsin

Largest cities in the Midwest:

• Chicago
• Cleveland
• Columbus
• Detroit
• Indianapolis
• Kansas City, Missouri
• Milwaukee
• Minneapolis
• Omaha
• St. Louis
• St. Paul
• Wichita

Employment rates in the Midwest have increased by 13% and unemployment rates have dropped 4% since 2010.

Why the Midwest?

There are endless benefits to living on or investing in Midwest property. Living in a post-pandemic world, many jobs have become remote positions. People have started moving out of the expensive big cities to less expensive, smaller cities. Why? Let’s run through the many advantages of living in small towns, particularly in the Midwest:

1. Lower house prices – Homes in the Midwest tend to cost much less than the nation’s average which is great, particularly when moving from an expensive state.
2. Low cost of living – The Midwestern states have a much lower cost of living than bigger states such as California and New York. Combine a low cost of living with higher salaries and low house prices and you have the perfect formula!
3. High quality of life – As we just mentioned, when the cost of living is low and you retain a high salary from a big company you will have a higher quality of life… not to mention, bigger yards, less traffic and less noise. A Midwest home is perfect for a young couple, a family with children, or an older couple looking to retire somewhere quiet.

Simply investing.

Investing in a Midwest home is a great investment opportunity. Midwest real estate is on the rise with increased remote positions and low cost of living. Purchasing a Midwest home or property to flip or rent out has the potential to provide a large return on your investment (ROI). As another resource, this article by Financial Samurai focuses on investment trends, and Midwest real estate in particular.

Interested in buying an Indiana home or property?

Indiana is one of the Midwest states mentioned above. If you’re seriously looking into buying a Midwest home, we would love to talk to you more. Please call us at 574-527-1700, send an email to Kim@homeswarsaw.com or leave us a message on the contact page.

There is no such thing as a bad question.

First of all, it’s important to know that you are not alone when asking these questions. Many first time home buyers and sellers have not been adequately taught about the home buying/selling process in general. At Homes Warsaw, we do our best to educate our clients about the process before they begin looking for a home.

We would love to answer any questions you may have about the home buying or selling experience and help you find your dream house!

Selling a house with an outstanding mortgage is very common.

Most mortgage terms are 15 or 30 years so people tend to move before their term ends. Recent studies have found that the average length of home ownership is 8 years, which is under the 15 year mortgage term. What that means is most people will still have an unpaid mortgage when they sell their home. So what happens to the mortgage? Let us explain.

Mortgage lender is paid off.

Whenever you sell your home to buy another home, you have to pay back your mortgage lender whatever is still owed on the mortgage. This all happens at the time of closing. This excerpt from Bankrate.com’s article, Selling a home with a mortgage, helps explain.

“When you close on the sale, you’ll use the proceeds to pay off your mortgage lender and any outstanding fees or closing costs. A representative of the lender will be at the closing to collect the money due to them. Whatever is left over after that is your profit — that’s the money you get to keep, aka the net proceeds. For example, if you sell for $300,000 and owe $150,000 to pay off the mortgage, plus $20,000 in closing costs, your profit is $130,000.”

Bankrate.com

Usually when selling your home, you are buying another one at the same time. Since you will most likely need the money from selling your current home to buy the new one, your offer will be contingent. It does weaken your offer but is very common when it comes to the world of home buying and selling.

It’s important to use a realtor.

If you want to simplify your home selling process and make sure everything is done correctly, it’s crucial to use a realtor. There are endless benefits of using a realtor when selling your home, as outlined in this article.

Are you ready to sell your house?

We would love to help you navigate this exciting process! Please call us if you have any questions regarding any part of the home buying or selling journey. Our phone number is 574-527-1700 and our email is Kim@homeswarsaw.com or you can send us a message on our contact page. We can’t wait to hear from you!

What is a fixer-upper?

Though the term is constantly being tossed around, a true “fixer-upper” is a house that is listed under market value due to substantial structural and/or cosmetic flaws. A fixer-upper house can typically be lived in while making renovations, but it can be a hassle especially if you have children. Many people choose to purchase fixer-uppers, renovate them, and sell them for a decent profit.

Pros:

• Low Upfront Price – The great thing about buying a fixer-upper is how cheap they are in comparison to market value homes. Your upfront down payment and closing costs will be much lower than normal.
• Decision Making Control – If you love making design decisions, buying a fixer-upper may be the right move for you. A fixer-upper requires a lot of decision-making but in the end your home will be customized to your wants and needs.
• No Competition – Another pro when it comes to purchasing a fixer-upper house is the lack of competition in a competitive market. It’s unlikely you’ll be in a bidding war for a house that needs a lot of work.
• Investment Opportunity – A fixer-upper home has return on investment (ROI) potential which is very attractive for the right buyer.

Cons:

• Renovations Are Costly – Though the upfront purchase price of the home will be low, you need to keep in mind that renovations are expensive and will add up. You need to have money set aside just for renovations or be willing to make them slowly over time.
• Live In Construction Zone – Living in a house that is being renovated means living in a construction zone. It may not work for your family if you have younger kids or adventurous pets. Be sure to think through what living in a fixer-upper means for you and your family before taking on this commitment.
• Surprise Costs – It’s important to remember that budgeting for a fixer-upper project is almost impossible. Estimating for simple renovations could turn into something more if any issues arise, and there’s a good chance they will. You must be ready to cover unexpected costs along the way.

Is buying a fixer-upper the right investment for you?

A fixer-upper is unlike other houses and you need to be prepared for all it entails. As long as you are ready for the process both mentally and financially, you have massive earning potential. If you have questions about buying a fixer-upper and need advice, we’d love to offer our guidance. Give us a call at 574-527-1700 or email us at Kim@homeswarsaw.com and we will do our best to help you during this exciting adventure!

1. Does renting make sense for you financially?
When most people think of renting out properties, they instantly think of the profitability but sometimes this isn’t the case. To be worthwhile, financially, the rent must cover or exceed the mortgage payments in addition to any cleaning, maintenance, or other fees.

2. Does anything in your home need to be fixed?
Another important thing to think about before renting out your house is the condition of your home. It may be a good idea to have your home inspected before renting it out so you’re aware of anything that needs to be fixed before tenants move in. A home that’s in good condition is also more attractive to renters. They don’t want to worry about constantly needing to call their landlord to have things tended to.

3. Will you manage the property or hire a property manager?
You really need to ask yourself if you’re ready to handle the responsibility of becoming a property manager or if you need to hire one. Managing a property, even just one, can take up more time than you realize. Assess your available time right now and try to determine if you have enough spare time to commit to managing a property.

4. Do you know the insurance requirements and legal responsibilities?
Most people don’t realize that renting comes with many insurance requirements and legal obligations. If you’re unsure of all the legal responsibilities that come with renting out a house, this article outlines Indiana’s guidelines. If you’re in another state, search online to find your state’s specific guidelines.

5. How will you find and evaluate renters?
There are so many ways to find renters these days that it can become overwhelming. This article does a great job of outlining the best ways to find quality tenants. Just remember to follow the right laws and regulations for your state when reviewing applicants to rent your property.

6. How will you determine your rent price?
Deciding on a monthly rental price is very important in the rental process. There are many resources available to you to help you determine your rent price. We are here to help as well and answer any questions you have.

7. How will you get paid?
Your tenants will have to pay you in some way, so what do you prefer? Obviously, in this digital age, online payment platforms are so easy and convenient for people to use. But it may be good to have a few other options as well such as check, money order, or cash. You’ll need to be sure to record all transactions and have rules set in place for late or missing payments.

8. Will you write your rental agreement?
Having an ironclad rental agreement for your renters to sign is perhaps the most important thing you can do. A rental agreement protects you as the landlord by carefully outlining specific rules and expectations for your tenants. The clearer the agreement, the easier it is for them to understand and follow.

One of the best investments you can make in your rental journey is hiring a lawyer who specializes in rental agreements. If anything needs to be done correctly, the rental agreement is it.

Is renting out your house the right move for you?

Hopefully this gave you some valuable information and questions to think about and ask yourself before jumping into the rental business. Our phone number is 574-527-1700 and our email is Kim@homeswarsaw.com if you have any questions for us about listing your property for rent!

Carpet

Pros:

• More Cost-Efficient – Although carpet is cheaper, it’s important to remember that it will need to be replaced every 10 yrs. 

• Warm on Feet – A great feature of carpet is the softness and warmth it provides for your feet.

• Easy to Install – Carpet is much easier and faster to install than hardwood, even experienced DIY-ers can tackle it!

• Absorbs Sounds – Unlike hardwood, carpet does absorb sound which is nice when you have a big family or a sleeping baby you don’t want to disturb.

Cons:

• No Added Home Value – A big con, especially for resale, is the lack of added home value carpet provides. 

• Needs Replaced Every 10 Years

• Hard to Remove Stains – Carpet is easy to vacuum but the stains can be difficult to remove.

• Synthetic

• Traps Pollen and Pet Hair

Hardwood

Pros:

• Added Home Value – A great benefit to hardwood is the added home value. Hardwood is very attractive to home buyers.

• Long Lasting – Hardwood has been proven to last almost 100yrs, whereas carpet has to be replaced every 10 years.

• Easily Cleaned – With hardwood, it’s easy to see the dirt on the floor which makes it much easier to clean. Also, if you spill a liquid on hardwood you can simply wipe it up where carpet stains easily.

• More Attractive – Almost everyone would agree that hardwood floors are more attractive and provide a clean, modern look.

• Natural – The fact that hardwood is a natural material is appealing to more home owners and buyers.

• Better for Allergies – Dirt, pollen, human and pet hair are easy to spot and clean with hardwood floors which is better for those with allergies.

Cons:

• More Money – Installing hardwood does cost more money upfront but is longer lasting than carpet.

• Cold on Feet

• Easy to Scratch – Generally, hardwood is more durable than carpet but it does get easily scratched if you’re not careful.

• Sounds Travel

Is carpet or hardwood better?

The answer to this question is up to you! Read through the pros and cons above and decide what is better for you and your lifestyle. If you’re wanting to add value to your home, hardwood is the way to go. If you’re not concerned about adding home value and are aiming for soft and cozy, carpet is for you! Please call us at 574-527-1700 or email us at Kim@homeswarsaw.com to talk through your concerns about carpet or hardwood. We can’t wait to hear from you!

1. Old Piping, Heating, and Electrical

Many old houses will need a few updates when it comes to piping, heating, and electrical but old farmhouses may require a complete overhaul. The year the farmhouse was built can determine if the piping meets current building codes or not. Another way to figure out if your piping needs replacing is to hire an experienced plumber to inspect your home.

Old homes usually lacked sufficient insulation making it hard to effectively heat the whole house. These homes also aren’t built to support a new heating system, so you may have to explore other options when it comes to heating your home.

Like heating systems, old farmhouses typically weren’t built for modern electrical devices like computers, televisions, or in some cases, refrigerators. If you’re looking to purchase an old farmhouse, odds are you will have to rewire at least a portion of the home which can be costly.

2. Renovations

One of the biggest considerations when buying an old farmhouse is the price of renovations. Any farmhouse you buy, unless it’s been recently renovated, will require serious work to achieve move-in ready status. Whether it be adding extra insulation throughout the house, replacing outdated fixtures, or knocking down a wall, you need to be prepared.

3. Building Codes

During the buying process, you most likely will have an inspection done on the home and find out what isn’t up to code. The good news is, if the home is old enough it should be grandfathered in and not required to meet current code requirements. However, if the home undergoes any modifications or replacements, those areas of the home will have to be compliant with the current building codes.

4. Land Upkeep

Most farmhouses come with a large amount of land which means more upkeep for you. You’ll be responsible for the property and anything on it. Usually, land owners will maintain the lawn around their home and let the other areas naturally grow, though the land will still need periodic checks.

5. Isolation

If you’re considering purchasing a farmhouse as a family home, there are a few things to consider. Most farmhouses are outside of city limits which means a longer trek into the city for shopping, school, and other activities. If your kids play sports or want to go to a friend’s house, it will mean a longer drive for you.

Living in an isolated area does mean less traffic, less noise, and more privacy for your family. You can invite guests over and they can park wherever they want, stay as late as they want, and you’ll have all the space you need. It also means lots of land for your family to explore and make memories on.

6. Internet and Cell Reception

A large downside to living in an old farmhouse is the lack of cell phone reception and internet access. As mentioned above, farmhouses weren’t built for the modern world so they didn’t have internet hookups. It may be costly and difficult to have wireless internet installed in your home.

7. Hidden Issues

Lastly, any farmhouse is going to have hidden issues that you may find early on or down the road. It’s important to have an emergency budget in case something urgent presents itself. These hidden problems can greatly range in cost and it’s better to be prepared when they do occur.

Is a farmhouse right for you?

Living in and renovating an old farmhouse isn’t for everyone. It takes vision, patience, and money to transform an old farmhouse into a suitable home for modern living. A farmhouse has many pros and cons, just like any home. If you’re considering buying a farmhouse, give us a call at 574-527-1700 or send us an email to Kim@homeswarsaw.com. We’d love to walk through this journey with you.

Inside the Home:

1. Door sweeps – Door sweeps should be installed on all exterior facing doors, where no light comes through. The less accessible your home is to pests, the better. In addition to entry doors, the garage door should also be sealed using a rubber seal.
2. Screens – All doors and windows that can be opened should have screens installed. If possible, keep windows and doors closed at all times to prevent small bugs from entering through the screens.
3. Repair leaks – Inspect your home for leaky pipes and repair them as soon as possible. Water attracts pests and can also cause water damage, allowing for another easy entry point.
4. Cracks should be filled – Make sure all cracks around windows or doors are filled as well as larger openings that can give bugs an accessway.
5. Clean – Cleaning your home is so important and can greatly reduce the presence of pests in your home. Don’t leave crumbs or dirty dishes sitting out overnight and keep trash sealed.
6. Utility openings should be sealed – Seal any utility openings such as around pipes, wiring, faucets, or anything that can serve as an entrance for bugs.7. Store food in containers – Using airtight containers to keep food in will prevent ants from sneaking their way in. Everything in the kitchen should be sealed off and fruit should be thrown away when it goes bad.
8. Use wire mesh – Wire mesh can be used to cover vents located in the chimney, attic, and crawl space to prevent rodents and small animals from getting in.

Outside the Home:

1. Self-closing trash lids – If possible, it’s important to choose an outdoor trash can that is self-closing and seal tightly to stop pests from sneaking in. If you have been provided a trash can by your waste service, there are a number of ways you can pest-proof your garbage receptacle.
2. Keep the yard clean – Maintaining your yard is a simple way to keep bugs and rodents away from your home. The less clutter, leaves, and limbs touching the house, the less entryways into your home.
3. Maintain compost bin – If using a compost bin, there are several best practices to note when trying to keep out bugs and animals. Avoid composting meats, bones, or manure and try to keep the fresh waste buried towards the middle of the pile to mask the smell. For more tips on bug and rodent proofing your compost bin, read this detailed article from the Green Bay Press Gazette.
4. Add flowers – Planting flowers will attract helpful bugs to eat on any decayed matter they find in your yard, reducing the amount of unneeded bugs and animals.
5. Attract bats and birds – Along with flower flies and parasitic bugs, attracting bats and birds to your yard will only benefit you. Birds will set up camp in your yard if you provide trees to nest in and fresh water to drink. Bats look for places to roost during the day, so consider providing them with housing.

Is your home a bug free zone?

If you’re having trouble with bugs and other pests, we hope these tips will transform your home into a bug free zone! Remember to let us know if you need any recommendations when it comes to pest control services. We would love to help you! Simply call us at 574-527-1700 or send an email to Kim@homeswarsaw.com to talk to us!

Curb Appeal

Believe it or not, landscaping can greatly increase your home’s value. Curb appeal makes a house more attractive and it also requires less work for the buyer when they move in. Landscaping doesn’t just include flowers and shrubs. Trees, especially mature trees, can increase a home’s value by 20 percent, according to this article by the Arbor Day Foundation.

Lower Energy Bills

Another one of the many benefits of trees is their ability to save you money! Trees, when placed in the right place, can shade your home from the sun in the summer and protect your home from cold winds in the winter. Shading and protecting your house from the cold weather can help save you hundreds of dollars a year. Be sure to research what types of trees are hardiest and best for your area. Even newly planted trees, when put in the correct spot, will have an effect on your energy costs in as little as five years.

Cools Home and Neighborhood

Not only do trees benefit your home, but they also benefit your neighborhood. Trees have a unique cooling effect known as transpiration. Transpiration cooling is what happens when the water is transpired from the tree’s leaves and into the air around them. This water vapor cools the surrounding air and causes a cooling effect. When there are trees along the streets in a neighborhood, the neighborhood becomes cooler as a whole.

Increases Community Value

As we mentioned above, trees provide many advantages for our homes and our neighborhoods. When trees are planted in yards and along neighborhood streets, property values increase by as much as 15 percent. There are many other ways trees increase community value such as:

• Lowering energy costs
• Help purify the air
• Reduce noise
• Prevent erosion
• Attract animals

Provides Nutrients and Shelter for Animals

Last but not least, trees are used for shelter and food for wildlife. Birds can perch there to sing and nest, squirrels can use trees to find food, and many other organisms thrive off the nutrients and shelter the trees provide.

Are you thinking about planting trees in your yard?

Please contact us if you have any questions when it comes to planting trees and improving your home’s curb appeal. Call us at 574-527-1700 or send an email to Kim@homeswarsaw.com so we can help meet your needs.

Higher Property Cost

The initial cost of a waterfront property will be more than a normal lot simply because it’s on the water. Lakefront properties are limited and don’t become available too often. This makes these properties even more in demand and attractive to buyers.

If you are looking to buy a lake house as a second home, you will also need to be prepared to meet more requirements like putting more money down.

Added Expenses

With any home, there will always be needed maintenance and unexpected expenses that can arise, but a lake house is in a league of its own. A lake house comes with many added expenses that you may not know about:

• Flood insurance – Though it may not be required, flood insurance is always a good idea when it comes to a waterfront property. Even if your house isn’t right beside the water, it’s better to be safe than sorry when it comes to flooding.
• Maintenance costs – It may not come as a shock to you that a lake house requires more maintenance and regular servicing, especially if you have a dock or retaining walls. Lakefront homes will develop more wear and tear than a regular residence, which can take a toll on your finances if you’re not prepared.
• Higher insurance rates – Since a lake house is considered high risk, depending on how far away from the water it is, it is more of a liability. Along with flood insurance, don’t be surprised if your home insurance is more expensive than an inland home. Both water and wind can take a toll on your home slowly over time.

Lack of Privacy

Not all lake houses have the same amount of privacy. Even if your home, or potential home, is located in a small slough, boaters may stop around your property to go for a swim or to simply look around. Most lakes are accessible to the public which means you may have unexpected guests from time to time.

Owning a Lake House is Fun!

Although owning a lake house may have some disadvantages, the main purpose of having a lake house is to have fun and make memories. Living in a lake house or owning a lake house as a second home provides a constant vacation experience. From bonfires to boat rides, living on the lake offers endless entertainment for all ages. Buying a lake house comes at a large price, but most lake house owners would agree it’s the best investment they’ve made.

Homes Warsaw Owner, Kim Clark, is a Lakefront Property Specialist

If you’re considering purchasing a lakefront home, you’ve come to the right place! Our leader, Kim Clark, happens to specialize in lake house property. We would love to talk to you about buying a lake house. Please call us at 574-527-1700 or send an email to Kim@homeswarsaw.com so we can help you find the perfect lakefront property!

You make the decisions

One of the main benefits of owning a home is the ability to make all the decisions when it comes to your space. When renting an apartment or home, you may be limited on what you can do when it comes to projects. You may not be allowed to paint a wall or even hang a curtain rod whereas when you own your home, you have unlimited freedom.

Good investment

If you are looking for a great investment opportunity, consider saving for a house instead of renting. While owning a home and renting both have their advantages and disadvantages, paying for rent is not an investment. Rarely have we seen homes lose their value. If you take good care of your home and add value to it through curb appeal and interior projects, you’ll be sure to see a return on your investment.

Build equity

Equity in a home is the difference between what you owe on your mortgage and your home’s worth. At first, your mortgage payment will mainly be paying on the loan interest, but over time more of your payment will go towards the loan. Any equity built in your home, is your money to keep. This means you can invest this money, use it as a loan, or simply keep it after you sell your home.

Privacy

Unlike renting an apartment, a house provides more privacy. You don’t have to worry about hearing your neighbors through your wall or the people above you stomping around. If you live in a tightly spaced neighborhood, installing a fence or privacy wall can easily provide seclusion from surrounding houses.

Stability

With home ownership comes stability: the stability of knowing what your mortgage payment will be every month and the stability of long-term residence.

Stable, consistent mortgage payments are a welcomed change from annual rent increases. Your monthly mortgage payment will always stay the same unless you refinance your loan.

A sense of stability also stems from getting settled in your home. Once you have been living in your house for a while and stuff begins to accumulate, moving becomes more and more daunting. Committing to a house means committing to the general location, creating a stable environment for you and your family.

Tax benefits

Along with the benefits mentioned above, another rewarding aspect of buying a house is the tax breaks it can provide. There are a number of tax credits and deductions when it comes to purchasing a home. Talk to a certified accountant to see what you can qualify for.

Are you ready to buy a home?

If you’re ready to stop paying rent and start investing in your future, let’s talk! Home ownership is truly rewarding and offers many advantages. If you want to learn more about the home buying process, we’d love to walk you through it. Please give us a call today at 574-527-1700 or email us at Kim@homeswarsaw.com so we can help you!