URGENT UPDATE: Homeowners in Boulder, Colorado, are urged to conduct their annual real estate checkup IMMEDIATELY as December approaches. This critical review helps ensure financial well-being and sets the stage for 2025 investments. With real estate market dynamics shifting, it’s essential to assess your property’s value and align your financial strategies.
For those who haven’t purchased a home yet, the message is clear: it’s time to invest. Real estate has historically proven to be a lucrative avenue for generating retirement income. Meeting with a Realtor® now can pave the way for your first property purchase, unlocking financial opportunities for the future.
If you already own real estate, your annual checkup should focus on key assessments that could impact your financial health. Start by obtaining a comprehensive market analysis from your Realtor®. Notably, homes in Boulder have appreciated significantly over the decades; for instance, properties in Baseline Subdivision that sold for under $30,000 in 1978 are now valued starting around $750,000 in 2025. Updating your home’s value annually is crucial for effective financial planning.
Reviewing your real estate insurance is another imperative step. Ensure your coverage aligns with current replacement costs, especially in light of rising building expenses since the Marshall Fire. Consider additional protections like flood insurance to safeguard against unexpected damage.
Next, check the loan balance on your home and rental properties. With amortized loans, your balance decreases over time, allowing you to build equity. This equity can be a powerful asset when considering future investments or refinancing options.
IMPORTANT: If you purchased your home with a low down payment, you may be paying Private Mortgage Insurance (PMI). With property values rising, you might qualify to eliminate PMI, significantly lowering your monthly payments. Contact your lender to explore your options for removing this additional cost or refinancing your mortgage.
As interest rates have recently dipped, now is an ideal time to reevaluate your mortgage. If you have a 30-year loan that’s five years old, consider refinancing to take advantage of lower rates. Be sure to ask your lender about recasting your loan to maintain your current term while benefiting from reduced payments.
When contemplating refinancing, think carefully about your loan term. If a 30-year loan doesn’t appeal to you, a 15-year loan can accelerate principal reduction, though it comes with higher monthly payments. Some lenders may offer recasting options that allow you to adjust your loan to current interest rates without extending the term excessively.
Meeting with your lending professional and Realtor® is essential. They can provide insights based on your current property values and loan balances, enabling you to strategize effectively for future investments. If your family is growing, you might consider upgrading to a larger home while also expanding your real estate portfolio.
Scheduling a home inspection is vital for both homeowners and landlords. Regular inspections can uncover hidden problems before they escalate. For example, checking your attic could prevent unexpected surprises, like a family of raccoons taking residence!
Finally, consider obtaining a home warranty. Many policies cover essential components like furnaces and water heaters. Knowing you have this coverage can alleviate financial strain in case of unexpected failures.
Start your real estate checkup today by reaching out to your Realtor®, lending professional, and home inspector. Time is of the essence as you prepare for the new year and the opportunities ahead.
For more insights into the real estate market and home trends, stay updated with atHome Colorado, your weekly source for real estate news.
Duane Duggan, a seasoned Realtor® in Boulder since 1978, encourages homeowners to act now to secure their financial future. With over 3,000 transactions under his belt, Duane is recognized as a trusted source in the community. Contact Duane at [email protected] for personalized advice and strategies.
