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Net worth is all assets less liabilities, so you should include your home’s value and subtract whatever balance is left on your mortgage.
That said, it’s also helpful to understand what’s your net worth without the home and mortgage, since those are your financial assets you’ll live off and are generally more liquid in an emergency. Having a high net worth isn’t amazing if it’s all tied up in your home.
Well put!
I would net the home value and mortgage as you described
I’d also net it out, but think it’s valuable to exclude home price when you actually think about your net worth day to day, since your home is less liquid than the others. Dropping my Personal Capital referral here in case you need a tracker! Found out about it through fishbowl, and it makes tracking assets/etc easy.
I include what I realistically can get from the house after the fees and deduct the principal + total outstanding interest
It’s somewhat subjective whether or not to include your home. Some feel it should be left out because you need a place to live and would be unlikely to ever sell it without buying a similar home.
Others feel it should be included because it certainly is an asset that could be sold, because over long periods of time the value can change dramatically, and because you might choose to downsize in retirement. I suppose in extreme cases you could also be underwater on your mortgage, owing more than your house is worth.
If you do include it then you should subtract out the mortgage, and if you leave it out, leave out the mortgage too.
I have a model where I track both asset and liability. The liability amortized monthly and the asset gets adjusted periodically based on recent home sales.
Net Worth = All Assets - All Liabilities There is no other definition.
I personally include the home price I bought it for as the asset side and the amount I still owe as the liability side. It may be under reporting the net until I sell it but I’m okay with it