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End of Year Net Worth

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  • Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6339
    Joined: 01/12/2016
    Earnest refinancing bonus

    I wouldn’t mind seeing an anonymous poll, although the numbers alone are likely not that helpful given the many other variables (age, years since training, leverage perhaps, partner/spouse data, to name a few…).

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    WCI already has that data, at least for the conference attendees. There was a pre-Conference poll, including questions about career status, age, net worth.

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    No one would be surprised by the Net Worth data, at least if they’re paying any kind of attention around here.

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    Cool, I love the data and the color scheme for conference attendees. It’s kind of like the Sneetches.

    If you are a royal blue and tell me so in PC, I will buy you a local brew. (PoF, don’t even try.) Or a hot chocolate, if you prefer.

    If you are powder blue or, especially, pink, I am available to be your guest for dinner at the Stein Eriksen Lodge restaurant (Glitretind).

    If you are powder blue or, especially, pink, I am available to be your guest for dinner at the Stein Eriksen Lodge restaurant (Glitretind). 

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    Is @hatton1 looking for a dinner date?

     

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    All of the veggies will have to find some good places to eat. I break for sushi as well.

    #96072 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3486
    Joined: 01/21/2016

    I wouldn’t mind seeing an anonymous poll, although the numbers alone are likely not that helpful given the many other variables (age, years since training, leverage perhaps, partner/spouse data, to name a few…).

    Click to expand…

    WCI already has that data, at least for the conference attendees. There was a pre-Conference poll, including questions about career status, age, net worth.

    Click to expand…

    No one would be surprised by the Net Worth data, at least if they’re paying any kind of attention around here.

    Click to expand…

    Cool, I love the data and the color scheme for conference attendees. It’s kind of like the Sneetches.

    If you are a royal blue and tell me so in PC, I will buy you a local brew. (PoF, don’t even try.) Or a hot chocolate, if you prefer.

    If you are powder blue or, especially, pink, I am available to be your guest for dinner at the Stein Eriksen Lodge restaurant (Glitretind).

    If you are powder blue or, especially, pink, I am available to be your guest for dinner at the Stein Eriksen Lodge restaurant (Glitretind). 

    Click to expand…

    Is @hatton1 looking for a dinner date?

     

    Click to expand…

    All of the veggies will have to find some good places to eat. I break for sushi as well.

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    Park City has always had some excellent restaurants (fine and casual), with lots of options for my “selectively extravagant” pescatarian palate. And great local Utah beer.

    #96079 Reply
    Liked by Zaphod
    Avatar eyeMD 
    Participant
    Status: Physician
    Posts: 1
    Joined: 03/03/2018

    Forgive me if this has been answered already (I couldn’t find an answer if my search of the forum), but what is the best way to determine the value of one’s home for the purpose of net worth calculations? Using the “Zestimate” from Zillow.com is an easy method, but I’m sure there are issues with its accuracy. However, perhaps more accurate methods aren’t worth the extra trouble. Just curious how others determine the value of their home when calculating their net worth at the end of year. Thanks.

    #218742 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4715
    Joined: 01/08/2016

    However, perhaps more accurate methods aren’t worth the extra trouble.

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    yup.

    #218751 Reply
    Liked by Zaphod, Tim
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 374
    Joined: 02/22/2016

    You could use your county tax assessment for the value of your home.

    #218753 Reply
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 966
    Joined: 02/06/2016

    You can use Zillow’s Zestimate, but they are often way off.  A better method is to look at recent sales of similar homes in your neighborhood, you can get a good ballpark value for your home.

    Regarding one example, I think the Zestimate for our home is overestimating the true value by hundreds of thousands of dollars, and I am pretty familiar with the local real estate market through neighbors who have bought and sold.

    #218754 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 3073
    Joined: 01/03/2017

    You could also just not count your house in your net worth.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #218755 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3571
    Joined: 01/14/2017

    Forgive me if this has been answered already (I couldn’t find an answer if my search of the forum), but what is the best way to determine the value of one’s home for the purpose of net worth calculations? Using the “Zestimate” from Zillow.com is an easy method, but I’m sure there are issues with its accuracy. However, perhaps more accurate methods aren’t worth the extra trouble. Just curious how others determine the value of their home when calculating their net worth at the end of year. Thanks.

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    I would not use the Zillow estimate or the county tax assessor’s estimate.  If you really want to know you’ll need to do a comp analysis on homes that have closed recently in your area (school district, on or not on busy streets, same parking situation, etc.) and look to see what updates they have in their pictures.  You’ll start to get a good idea of the price range for average homes vs fully updated homes on a $/sq ft basis.  Price yours accordingly.  If you are planning on using a realtor and/or selling to someone with a realtor take off 6% as well as the taxes still owed, title insurance (if you have to pay), other fees where relevant, and any taxes on the gains.  That’s your net revenue.  Then subtract what’s owed to the bank from your current mortgage statement.  That’s your equity.  Best way to increase that is not use a realtor.

    Knowing your home’s value is only relevant if you plan on doing something with it – moving out and downsizing, renting it out, etc.  Because then you’re either taking out equity or weighing the opportunity cost of continued ownership or unused capacity.

    #218756 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1905
    Joined: 01/08/2016

    My insurance company gives an estimated value.  I take the lowest between that, Zillow and Trulia.

    Agree with WBD that these estimates can be way off.

    #218759 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2608
    Joined: 05/01/2017

    I’m a little less down on Zestimate than I was a year ago. Not sure if they improved their algo or something but anecdotally it seems better.

    #218770 Reply
    Liked by Tangler
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3380
    Joined: 09/18/2018

    For property taxes , 10% lower.
    For selling, 10 % higher.
    For NW, I leave that to the executor of my estate.
    Pretty simple at year end. Zero.

    #218772 Reply
    Liked by Tangler
    Avatar StarTrekDoc 
    Participant
    Status: Physician
    Posts: 2150
    Joined: 01/15/2017

    If you’re using tracking sites, you’ll need to normalize to some standard — and that’s really zillow at the moment.   You’ll want that to track year-to-year unless you’re tightly in tuned with local real estate for other reasons.

    If it’s off consistently by x% in your area, the just do that end of the envelope calculation at the end.

    #218780 Reply
    Liked by Tangler
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 3486
    Joined: 01/21/2016

    Later in the game, if Zillow, the assessor, or your own comp analysis is off 10 or 25 or 50 percent, it may not matter that much. A very successful friend just sold his expensive house, quickly and quietly off the market, for less than he could have if he had gone through the usual process. An extra $50k, $100k or even $200k is not very meaningful for him. He just wanted out quickly…and on his terms…and that’s what he got. The buyers got a really good deal!

    On the other hand, we were out with good friends who are also neighbors from our subdivision last night, and she dropped her value of her home into the conversation, and it was “x”. Coincidentally, that is exactly how I value our home, which has 30% more square footage, more updates, better lot location, 20% higher Zillow estimate, 25% higher county tax assessment, etc. I know that she is counting on selling hers for “x”, and that it probably really matters for her.

    #218785 Reply
    Liked by Tim, Peds, Tangler, hatton1
    Avatar nephron 
    Participant
    Status: Physician
    Posts: 288
    Joined: 05/09/2019

    real estate valuations seem very difficult to predict, it really does just take on buyer willing to pay the amount you want to sell it and that is how much your home is worth.  Besides zillow, trulia, I think redfin offers an estimate.  I listened to a nice book on tape about zillow and their home valuations, the author claimed that the z-estimate algorithm was only 5-10% off most of the time and it is continually getting better.  It was an interesting book, the computer people at zillow look at a lot of factors on a macro level to figure out your estimate (eg starbucks vicinity).

    #218820 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1905
    Joined: 01/08/2016

    real estate valuations seem very difficult to predict, it really does just take on buyer willing to pay the amount you want to sell it and that is how much your home is worth.  Besides zillow, trulia, I think redfin offers an estimate.  I listened to a nice book on tape about zillow and their home valuations, the author claimed that the z-estimate algorithm was only 5-10% off most of the time and it is continually getting better.  It was an interesting book, the computer people at zillow look at a lot of factors on a macro level to figure out your estimate (eg starbucks vicinity).

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    I really enjoyed Zillow Talk!  A couple years ago, I was in a “big data” and math reading phase so that book fit right in.  I actually just skimmed it again since I’m looking to sell a rental.

    We’ll see who is more accurate, my realtor [queue the groans] or the Zestimate, because they disagree by literally 50%….  The house has a handful of desirable characteristics that are unique enough that modeling a value would be difficult.  At least that’s my hope!

    #218835 Reply

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