It's correct for your net work. Actually, your NW would technically also include what you could get if you sold your TV, your computer, your furniture, your entire wardrobe, all your kitchenware, your dog, etc. Everything you own.
But that number means very little when looking at retirement. If you own a $10million home, you have a very high net worth, but if you plan to live in that home until you die, you can't use that money for anything (setting aside HELOCs or reverse mortgages for the moment), so you are in more or less the same situation as someone who plans to live in their $200k home, even though their NW is 1/5 of yours.
Around here "net worth" seems to be used to mean both actual net worth (the value of everything one owns if it was all sold) but also something more like "assets I will use to live on in retirement", or "stache", in Mustachian terms. That's just the money in investment and savings accounts for most people. Some people may count part of the equity in their home if they plan is to sell and downsize, or they might count the value of rental properties. But it is basically the money they will use for all spending in retirement.