HELOC: How does the bank decide what your house is worth?

[Brian Erickson]

We purchased our first ‘house-hack' less than a year ago and we are looking to utilize a HELOC to have on hand for further investments.

Do banks typically just look at the difference between purchase price and what you owe to calculate the equity?

We bought a poorly advertised property that we believe is worth more than we bought it for (not basing that just off zestimates, estimates etc even though they would agree).

Is an appraisal ordered by the bank? (We have done some remodeling to about half the house).

Or do they just google it essentially and call it a day?

HELP!