Author Topic: Question about asset value  (Read 1288 times)

taking fire

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Question about asset value
« on: November 12, 2015, 11:38:13 AM »
I'm trying to incorporate a net worth calculator into my excel spreadsheet. I'm having trouble figuring out values of my assets. I paid (am still paying on) a certain amount for my home, but I'm not sure what it is actually worth. Same for vehicles. I mean it kind of turns into a deal where the value is what somebody will pay for it, and the only way to find that out is to sell..

As far as debts, those are cut and dry.

How would I figure asset value where the final number comes up accurate?

FrugalFan

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Re: Question about asset value
« Reply #1 on: November 12, 2015, 11:53:54 AM »
For homes it's hard to say. I still conservatively list ours at the price we paid 5 years ago, but it's probably gone up from there. You can list a number similar to other homes selling nearby (but you would probably only know asking price, which is not the same as selling price). Alternatively, homes generally keep pace with inflation except in very hot markets, so you could look up inflation values for each year and adjust that way (or a similar fixed value like 3%). For cars, people generally go by Kelly Blue Book. Though some people don't even include cars in their net worth since they are depreciating assets and you can't use the money unless you sell the car.

sisto

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Re: Question about asset value
« Reply #2 on: November 12, 2015, 11:58:38 AM »
You can get a generic home value from Zillow, but it can vary quite a bit. It's good to use as a base point. It should also show some homes that have sold near you and you can compare with those too.

FrugalFan

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Re: Question about asset value
« Reply #3 on: November 12, 2015, 12:01:54 PM »
You can get a generic home value from Zillow, but it can vary quite a bit. It's good to use as a base point. It should also show some homes that have sold near you and you can compare with those too.

Ah yes, forgot about Zillow in the US. Wish we had that here.

Exflyboy

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Re: Question about asset value
« Reply #4 on: November 12, 2015, 12:05:58 PM »
This is why I ignore the value of our assets and just talk about "liquid net worth".

The reason being is you will always need somewhere to live so the value of the house is not that important.. Unless you have an egregiously large house and know in your heart you should downsize. I would still remove the outstanding mortgage value to get to liquid NW however.

taking fire

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Re: Question about asset value
« Reply #5 on: November 12, 2015, 02:16:20 PM »
Good advice, thank you.