HELOC related appraisal question

[Justin Hayman]

I'm currently looking into a HELOC and wonder if the community can chime in. I am specifically curious about how an appraiser might value upgrades.

In my situation, I bought a new construction home and closed on Memorial Day weekend last year.  The same model I'm in is now selling for 92k more than my purchase price.  I also added 45k in upgrades.  Since I moved in at nearly the same time as all my neighbors, we've forged a pretty tight community.  That said, I've toured everyone's house, and I added the most upgrades in my area by a good margin.

How much value will an appraiser account for in terms of the 45k in upgrades?  As I shop around from bank to bank, having this information in my back pocket will be a huge plus. 

Thanks in advance to those who chime in!

--Justin

[Josane Cumandala]

Residential real estate appraiser here. The condition of your property is the thing you have the most control over. You can certainly point out the upgrades you've purchased and how much you spent. Just be aware that cost does not equal value. The value of upgrades depends on the the priorities of buyers in the marketplace, not the cost of the upgrades to you. The appraiser will look at your property in relation to what's selling in your area. Hopefully there are some other homes selling nearby with similar upgrades which would support a higher value. Active listings can be factored in as well, as the days on market and listing discounts can help support the value opinion. Hope that helps!