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nnual real‑estate checkups are as vital as yearly physicals for your finances. December is the ideal month to assess your property status and tweak plans for the coming year.
**No property yet?**
Ask yourself: “Do I own real estate?” If the answer is no, it’s time to start. Early investment can become a reliable retirement income stream. Schedule a meeting with a Realtor® to outline a strategy for your first purchase.
**Already own a home or rental(s)?**
Your yearly review should cover several key areas:
1. **Market Value Update**
Get a fresh market analysis from your Realtor. Long‑term appreciation in our region is strong—homes that sold for under $30,000 in 1978 now fetch around $750,000 in 2025. Update your property’s value annually and include it in your financial statement to gauge future prospects.
2. **Insurance Coverage**
Reassess your homeowner’s policy to match current replacement costs, especially after the Marshall Fire’s impact on construction expenses. Consider adding flood coverage or protection against sump pump failures to guard against events like the 2013 floods.
3. **Loan Balance & Equity**
Track the remaining principal on mortgages. On a 30‑year loan, equity grows slowly at first but accelerates after about 14 years. Include the current balance in your net‑worth calculation.
4. **Mortgage Insurance**
If you paid PMI for a low down‑payment purchase, rising equity may now allow removal. Contact your lender to see if PMI can be dropped or if refinancing is needed. Even if not immediately possible, plan a path toward elimination.
5. **Interest Rate Check**
Mortgage rates dipped in 2025. If your 30‑year loan is five years old, refinancing can reset the amortization schedule. Ask about a recast to keep the remaining term while lowering the rate. A lower rate plus PMI removal can significantly reduce monthly payments.
6. **Loan Term Decisions**
A 15‑year refinance accelerates principal payoff but raises payments. Some lenders offer a recast: for example, a 20‑year amortization at today’s rates if you’re 10 years into a 30‑year loan. Choose a term that balances speed and affordability.
7. **Professional Meetings**
Armed with updated values and balances, meet with your lender and Realtor. Knowing your equity opens doors to expanding your portfolio—whether you need a larger family home or want to refinance for a rental down payment.
8. **Home Inspection**
Schedule a periodic inspection, especially in spring after winter’s hidden wear. Inspectors spot minor repairs before they become costly, helping you budget for major items like roofs or furnaces.
9. **Home Warranty**
Consider an independent Home Warranty Policy covering major systems—furnace, AC, water heater, etc. Evaluate premiums, coverage limits, and deductibles to protect against unexpected failures.
**Start today** by contacting your Realtor, lender, and inspector.
Duane Duggan, a University of Colorado business graduate with a real‑estate major (1978), has served Boulder as a Realtor® since that year. After joining RE/MAX of Boulder in 1982, he facilitated over 3,000 transactions and earned the Realtor® Emeritus and Circle of Legends honors. He authored *Realtor for Life* and *The Velocity of Wealth*. Reach him at [email protected].
Stay informed on local real‑estate and home‑garden trends with the latest e‑edition of atHome Colorado, published weekly by the Boulder Daily Camera, Loveland Reporter‑Herald, Greeley Tribune, and Longmont Times‑Call.
