UPDATE: As the year comes to a close, real estate experts are urging homeowners and potential buyers to conduct their annual real estate checkup NOW. This essential financial review is crucial for ensuring your properties align with your financial goals for 2025.
DECEMBER 2025 is the ideal time to assess your real estate status. For those without property, it’s time to act! Investing sooner rather than later can significantly enhance your retirement income potential. Meeting with a Realtor® today can set the foundation for your first home purchase.
For existing homeowners, an annual checkup means reviewing key areas to guarantee your real estate continues to support your financial aspirations. Here’s how to start:
1. **Market Analysis**: Home values have soared in Boulder, with properties in Baseline Subdivision increasing from $30,000 in 1978 to around $750,000 in 2025. Ensure you update your home’s value annually to reflect its current worth in your financial statements.
2. **Insurance Review**: Given rising replacement costs, especially post-Marshall Fire, it’s critical to verify that your home insurance is adequate. Consider additional coverage options, including flood insurance, to safeguard against unexpected disasters like the devastating floods of 2013.
3. **Loan Balance Assessment**: Monitor your mortgage balance carefully. As you pay down the principal, your equity increases, which can be beneficial for your net worth. Ensure this figure is accurately reflected in your financial documents.
4. **Mortgage Insurance Check**: Many homeowners may qualify to eliminate Private Mortgage Insurance (PMI) due to increased property values. Contact your lender to explore options for removing PMI or consider refinancing to reduce overall monthly payments.
5. **Interest Rate Review**: With mortgage rates fluctuating, especially with a decrease observed in 2025, now is the time to consult your lender about refinancing opportunities. A lower interest rate could significantly decrease your monthly obligations.
6. **Refinancing Options**: If refinancing into a new 30-year loan is unappealing, consider a 15-year loan for faster equity growth. Speak with your lender about recasting your current loan, which could offer a new rate without extending your term.
7. **Meet Professionals**: Schedule a meeting with your lending professional and Realtor. By understanding your current equity, you can make informed decisions about expanding your real estate portfolio.
8. **Home Inspection**: Regular home inspections are vital for maintaining property value. Consider scheduling an inspection soon to identify potential issues before they escalate, ensuring your investment remains secure.
9. **Explore Home Warranties**: If financial strain from unexpected repairs is a concern, evaluate the benefits of a home warranty policy to cover essential systems like heating and cooling.
ACT NOW! Start your real estate checkup by reaching out to your Realtor, lending professional, and home inspector. This proactive approach can secure your financial future and allow for strategic investments in 2025.
EXPERT INSIGHT: Duane Duggan, a seasoned Realtor® with over 3,000 transactions since 1978, emphasizes the importance of staying informed about your real estate investments. His experience highlights that even a small investment today can lead to substantial retirement income down the line.
Stay updated on the latest real estate trends and strategies by following trusted local sources like atHome Colorado. Don’t miss the opportunity to enhance your financial health—conduct your checkup today!
