Reply to What is your net worth? I'm excited to reach zero!

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[quote=Anonymous][quote=Anonymous][quote]Your net worth is your assets less your liabilities. Suppose you have a house worth $1 million with a $0.5 million mortgage. Your home equity's contribution to your net worth is 0.5 million - the home value less mortgage. Now suppose you sell the house. Your mortgage goes to zero and you have $0.5 million left. Your net worth is unchanged. [/quote]
Actually, when you factor in realtor fees and other transaction costs, you probably "lost" about $100,000 in net worth when you sold the place.  Oops.  [/quote]

Well, a lot depends on how accurate her housing value estimate was before she sold. Also, $100K would be a lot to lose in realtor fees and transaction costs, unless the house she is selling is worth well over $1M.

We just sold our house. I was always conservative on estimating its value (used county tax assessment value) when calculating my net worth.  It sold for about 10% more than that. With realtor fees and transaction costs, I came out about $5K ahead of my estimate.[/quote]

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