| 7/11/2023 2:21:18 PM Ikeh89 |
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| Maybe I alone on this, so I'm curious if anyone else has any thoughts. I personally don't like looking at my home value and incorporating those it into my statement on a monthly basis. I think every 3 or 6 months would be better. Reasoning for this is the ebbs and flows that occur with housing, but also as you stated "spent a bit too much luckily the property is appreciating" this allows you to have a false sense of security about your finances. Again, these are just my thoughts, I'd be curious of other opinions on this, no one is "right" or "wrong" just ideas. |
| 7/11/2023 3:47:31 PM FatStacks |
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| When we bought our current house in 2012, we adjusted the value up to match (offset) the cost of some permanent changes we made (patio/shed) right when we moved in. Otherwise, we haven't touched it until we refi'd in 2022. I don't adjust it otherwise. I'd rather understate it rather than rely on it. Just my opinion/way of doing things. Love to hear from others as well. |
| 7/12/2023 12:48:21 PM retire4lyfe |
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| The only values we use for home/property values is the actual cost we paid for them. Over time this will understate our net worth a bit, but I figure it is better to understate it then way overstate it. With any real estate, even if you know you could get a certain amount, that is not what you will end up with after selling fees and with investment properties taxes on any gains. We personally feel more comfortable using the cost of the properties at purchase even though I'm sure we could sell some of our properties for 2-3 times what we have them at since we have owned them for decades.
I agree with Ikeh89 that it "allows you to have a false sense of security about your finances". |
| 7/14/2023 6:45:42 PM Appliedvalueinvestor |
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| It probably is not a good strategy to update network as function of changing property values. I would also agree that a better strategy would be to peg the property value to purchase price. If values go up, your networth is understated but then that may also compensate for the cost of selling should you decide to liquidate the property. |
| 7/17/2023 5:20:16 PM azphx1972 |
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| I third (fourth?) keeping my home value at the original purchase price. Much less work and the online estimates aren't super accurate anyway, based on my personal experience. YMMV |
| 7/18/2023 3:42:22 PM mrw04c |
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| I agree that I leave it at the price you purchased it at unless you directly had an appraiser value it/re-value (for example, if you refinance). |
| 8/3/2023 8:42:39 AM girlnextdoor |
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| I somewhat split the difference. We purchased for ~$250k in 2019. I didn't update much when home values spiked during covid, but once it became clear that it was probably going to stay elevated, I bumped it up and have kept it at $300k. Zillow estimates our home around $370k which is probably closer to accurate given what similar houses near us have sold for this summer. But since we aren't planning to sell anytime soon and don't make any decisions based on our theoretical home value anyway, I keep it fairly conservative. |