- You own more than you believe you do
- People may inflate the value of personal possessions to offset the negative effects of debt on their networth
I prefer to take the exact opposite approach.
We have valued our personal possessions at $70,000. Afterall - there are four grown adults in our household and we tend to be the warehouse for all downsizing and deceased relatives.
However, when valuing our possessions, we don't seriously believe they are worth the list price. If anything, I estimate anywhere from 50% - 25% of list - assuming that approximates their liquidation value.
If we needed money, we wouldn't have time to hold out for the best price, search the internet or call to find the best buyer, etc....
Oddly, few of our possessions are actually very valuable per se, we just have so much stuff, it adds up. Over time, I would like to liquidate most of it - just to declutter. Many of the bigger things will probably be donated to charity - at least that way we'll get 40% of the value back.