Urgent Update: As December 2025 approaches, homeowners and potential buyers must conduct their annual real estate checkup to secure their financial futures. Experts stress that reviewing your real estate situation now is crucial to capitalize on market opportunities and ensure long-term financial stability.
If you don’t own property yet, the message is clear: now is the time to invest. Real estate remains a powerful vehicle for generating retirement income. Consult with a Realtor® immediately to devise a plan for your first purchase. The earlier you dive in, the greater your potential gains.
For current homeowners, this annual checkup involves critical assessments of your property. Start by obtaining a market analysis from your Realtor®. The long-term appreciation of homes in Boulder is noteworthy, with values skyrocketing from under $30,000 in 1978 to approximately $750,000 in 2025. Understanding your home’s current value is essential for planning your financial future.
Next, review your real estate insurance. With rising building costs following the Marshall Fire, it’s vital to ensure your coverage aligns with current replacement costs. Consider additional protections for potential flood damage or other unforeseen events, especially given past incidents like the 2013 floods.
Also, check the loan balance on your home or rental properties. If you have an amortized loan, your balance decreases over time, revealing increasing equity. This figure should be included in your financial statement to provide a clearer picture of your net worth.
Consider the removal of mortgage insurance (PMI). Many homeowners purchased properties with low down payments, which typically included PMI. With rising property values, you may now qualify to eliminate this extra expense. Contact your lender to explore your options for removing PMI or refinancing.
Don’t overlook your interest rate, which can significantly impact your monthly payments. After a spike in 2024, rates have dropped in 2025, making this an ideal time to reassess your mortgage. Refinancing could lead to substantial savings, especially if you eliminate PMI, enhancing your financial flexibility.
If refinancing isn’t appealing, consider alternatives like a recast of your loan. This option allows you to adjust your mortgage terms without starting over on a 30-year schedule. Discuss these options with your lending professional to find the best fit for your financial goals.
As your family grows or your financial situation changes, a larger home may be necessary. You can explore refinancing your current home while building your real estate portfolio. This strategy could involve renting out your existing property and using the equity to fund your next purchase.
Regular home inspections are also essential. Schedule one to identify maintenance issues before they escalate into costly repairs. A professional inspection can reveal hidden problems, ensuring your home remains a valuable asset.
Lastly, consider obtaining a home warranty if you don’t already have one. These policies can cover significant home components, protecting you from unexpected financial burdens. Understanding the coverage options is crucial for safeguarding your investment.
Start your real estate checkup today by reaching out to your Realtor, lending professional, and home inspector. Taking these steps now will empower you to make informed decisions and secure your financial future.
Duane Duggan, a seasoned Realtor® with RE/MAX of Boulder, emphasizes the importance of proactive real estate management. With over 3,000 transactions under his belt, he urges homeowners and buyers to act swiftly to maximize their investments.
Stay informed on real estate trends and insights by subscribing to atHome Colorado, your go-to source for the latest developments in the market.
