UPDATE: As the year comes to a close, homeowners and future buyers are urged to conduct an urgent real estate checkup to ensure financial stability in 2025. With rising property values and changing market dynamics, now is the time to reassess your real estate investments and make necessary adjustments.
If you do not own real estate yet, you may be missing out. The earlier you invest, the greater the potential for generating retirement income. Experts recommend meeting with a Realtor® immediately to devise a plan for your first purchase.
For existing homeowners, an annual review of your real estate portfolio is critical. Start by obtaining a market analysis from your Realtor. Notably, homes in Boulder have appreciated significantly over the decades; for example, Baseline Subdivision properties have surged from under $30,000 in 1978 to approximately $750,000 today. Keeping your home’s updated value in your financial statement is essential for effective future planning.
Additionally, review your real estate insurance to ensure it meets current replacement costs. The rising costs of building materials, especially post-Marshall Fire, are alarming. Consider adding coverage for flood damage or sump pump failures, particularly in light of the devastating 2013 floods.
Monitoring your loan balance is another pivotal step. For those with a 30-year loan, principal reduction accelerates in later years, increasing your equity. Make sure to reflect this updated loan balance in your financial records to gauge your net worth accurately.
Homeowners with Private Mortgage Insurance (PMI) should check if they qualify for its removal. Many purchased homes with low down payments, necessitating PMI. Given the recent rise in property values, you might now be eligible to eliminate this expense. Contact your lender to explore options for removing PMI or refinancing if needed.
Interest rates have fluctuated, and with recent decreases in 2025, it’s a prime time to reassess your mortgage. Refinancing could lead to significant savings, especially if you can eliminate PMI. If you’re hesitant to start over with a new 30-year loan, consider a 15-year loan or a recast to maintain your remaining term while benefiting from lower rates.
Meeting with your lending professional and Realtor is vital. Armed with current value and loan balance data, you can evaluate your equity. This insight may open opportunities to expand your real estate portfolio, whether by upgrading to a larger home or investing in rental properties.
Don’t overlook the importance of a home inspection. Regular checks can reveal minor repairs before they escalate into costly issues. A home inspector can identify potential problems hidden by seasonal weather, ensuring your investment remains sound.
Lastly, consider a home warranty to cover critical systems like heating and cooling. These policies can save you from unexpected financial burdens related to property maintenance.
Start your real estate checkup today by contacting your Realtor, lending professional, or home inspector. This proactive approach can secure your financial future and maximize your investment potential.
For personalized insights, reach out to Duane Duggan, a seasoned Realtor® in Boulder since 1978, at [email protected]. Stay informed on real estate trends and insights with the latest e-edition of atHome Colorado, your essential resource for real estate and community news.
