I just completed a VA assignment on a new home which has around $40000 in upgrades. VA in this region says its ok to use cost as equal to contributory value if you think this is the case. That is basically how I have been treating upgrades. However, I also recently completed an FHA with a similer scenario, but in this case I was more critical of the upgrades and only used 50% of the difference as the contributory value. I am just wondering how others are handling upgrades . I don't think there is any right or wrong way, but would like to hear how others handle it. Thanks.