UPDATE: It’s time for your annual real estate checkup! With December upon us, experts urge homeowners and potential buyers in Boulder, Colorado, to assess their real estate portfolios immediately to ensure financial stability heading into 2025.
An annual real estate checkup is crucial for maintaining your financial health. If you don’t yet own property, the message is clear: NOW is the time to invest. The earlier you enter the real estate market, the greater the potential for generating retirement income. Experts recommend meeting with a Realtor® promptly to devise a plan for your first purchase.
For those already owning homes or investment properties, your checkup should focus on several key areas to ensure your assets continue to align with your financial goals.
Start by obtaining a market analysis from your Realtor. Given the historical appreciation of real estate, it’s vital to update your home’s value annually. For example, homes in the Baseline Subdivision, which sold for under $30,000 in 1978, now start around $750,000 in 2025. Understanding your property’s current value helps you make informed decisions for your financial future.
Next, review your real estate insurance coverage. With rising building costs post-Marshall Fire, it’s essential to ensure your insurance aligns with current replacement values. Consider additional protections like flood insurance to prepare for potential disasters, as seen during the 2013 floods.
Don’t overlook the importance of checking your loan balance. As you make monthly payments on an amortized loan, the balance decreases, and your equity grows. Keeping this updated in your financial statement provides a clearer picture of your net worth.
Additionally, assess the possibility of removing Private Mortgage Insurance (PMI). Many homeowners purchased their properties with low down payments, which often included PMI. With rising property values, homeowners may now qualify to eliminate this cost, significantly lowering their monthly payments. Contact your lender to discuss options for removing PMI or consider refinancing if necessary.
It’s also crucial to check your interest rate. Mortgage rates have fluctuated in 2025, and refinancing could yield substantial savings. If your current loan is over five years old, ask your lender about recasting your loan to maintain your remaining term while benefiting from lower rates.
Think about the loan term when refinancing. If a new 30-year mortgage doesn’t appeal to you, consider a 15-year loan for faster principal reduction. Some lenders may allow a recast with a new interest rate while adjusting the amortization term to suit your needs.
Meet with your real estate lending professional and Realtor to discuss your current property values and loan balances. With this information, you can explore options for expanding your real estate portfolio. If your family is growing, you might consider acquiring a larger home while simultaneously building your investments.
For homeowners satisfied with their current residence, consider pulling cash out for a rental property. Consult with your lending professional to determine if you qualify now or can create a plan to do so soon.
Don’t forget the importance of a home inspection. Regular inspections can prevent costly repairs down the line, especially after winter. A home inspector can identify minor issues before they escalate, helping you maintain your property’s value.
Lastly, investigate home warranty options. These policies cover essential components like furnaces and water heaters, providing financial peace of mind. If you’re concerned about potential failures, exploring these warranties could be a prudent step.
Start your real estate checkup today by reaching out to your Realtor, lending professional, and home inspector. Ensure your financial health is on track as you head into the new year.
For expert insight, contact Duane Duggan, a seasoned Realtor® with over 3,000 transactions under his belt, at [email protected]. Don’t miss essential updates on real estate trends—stay informed with the latest e-edition of atHome Colorado.
