When calculating your net worth, do you use the tax-assessed value of your primary residence? Or do you use Zillow/Realtor.com?

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Years ago I used to have Zillow linked to my personal capital but it bounced around too much. Now, I take my best estimate of what I could sell it for, which is relatively close to Zillow, and discount it for selling costs and a bit more to be conservative. I only revisit every 2-3 years.

Some people just use the purchase price and don't adjust, just let the monthly mortgage payment slowly increase the net value. I like the simplicity of this but that would be materially less than the price I could sell it.

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Too granular. Just use a consistent measure. It’s directional anyway.

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I use Zillow. In California, Prop13 means that assessed value is very different from actual value.

I use Zillow and subtract estimated closing costs upon a future sale (approx 6.5% of value)

Are you talking about your home or other real estate holdings?

Personally, I don’t include my home in my net worth and only count my cash and investments on the assets side, nor do I include my outstanding balance on my mortgage.

After all, you’re always going to have to pay for housing, regardless of what happens in your life, so to me, it doesn’t make sense to include those two items (home and outstanding balance of the mortgage) in my net worth.

I just prefer to keep what I am looking at as my net worth to assets that are easily converted to cash, since my only real estate holding is my home, which I don’t view as an investment. It’s just where I live, and by owning my home, I simply have more autonomy and control over my dwelling.

People view things differently. It’s what makes the world that much more interesting.

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