UPDATE: The time for your annual real estate checkup is NOW! As December approaches, homeowners and prospective buyers in Boulder, Colorado, are urged to evaluate their real estate investments to ensure financial well-being in 2025.
Just announced: Experts recommend meeting with a Realtor® to create or revise your real estate strategy. Whether you’re looking to buy your first home or assess your current properties, taking action now can significantly impact your financial future.
If you don’t own any property, ask yourself: Why wait? Investing in real estate early can maximize your retirement income potential. Now is the perfect moment to connect with an experienced Realtor® and outline your homebuying plan.
For existing homeowners, an annual checkup involves crucial evaluations that can enhance your financial strategy. First, obtain a market analysis from your Realtor® to determine your property’s current value. Historical data shows that homes in Baseline Subdivision, once selling for under $30,000 in 1978, now start around $750,000 in 2025. This appreciation underscores the necessity of updating your home’s value to refine your financial planning.
Next, review your real estate insurance. With rising building costs and recent events like the 2013 floods, it’s critical to ensure your coverage aligns with current replacement costs. Consider adding protections like flood insurance to safeguard against unforeseen disasters.
Keep a close eye on the loan balance of your home or rental properties. Home equity grows over time, particularly around year 14 of a 30-year amortized loan when principal reduction accelerates. This equity can be a valuable asset in your financial statement.
Additionally, evaluate the possibility of eliminating mortgage insurance. If you made a low down payment, you may have Private Mortgage Insurance (PMI) included in your monthly payments. With rising property values, you might qualify to remove PMI, reducing your monthly expenses. Contact your lender today to explore options.
Interest rates are shifting, making this an opportune time to check your mortgage interest rate. While rates were higher in 2024, they have dropped in 2025. If you’ve had your loan for five years, ask your lender about refinancing or a loan recast to lower your payments without extending your term.
Consider your options for refinancing as well. If you prefer not to restart a 30-year loan, look into a 15-year loan for faster principal reduction. Alternatively, some lenders may allow a recast at today’s rates to suit your financial needs better.
Meeting with your real estate lending professional and Realtor® is essential for a comprehensive understanding of your financial position. Knowing your property’s current value and loan balances helps identify opportunities for growth in your real estate portfolio.
If your family size has changed or you’re looking for investment opportunities, now may be the time to upgrade your home while expanding your real estate assets. Refinancing your current home could provide the necessary funds for a new purchase.
Don’t overlook the importance of a home inspection, especially if it’s been a while since your last assessment. Regular inspections can reveal minor issues before they escalate into costly repairs.
Consider a home warranty as well. These policies can cover critical home components and provide peace of mind against unexpected failures, which could otherwise lead to significant financial strain.
Start your real estate checkup today! Connect with your Realtor®, lending professional, and home inspector to secure your financial future.
Duane Duggan, an experienced Realtor® since 1978 and a member of RE/MAX of Boulder, stresses the importance of proactive property management. With over 3,000 transactions under his belt, he is a trusted resource in the Boulder area.
Stay informed on the latest real estate trends by accessing the e-edition of atHome Colorado, your premier source for real estate insights and community updates. Don’t wait—take charge of your financial health today!
