You might want to create a separate account called 'Unrealized house
appreciation' representing the difference between the original and
subsequent investments, and the increased value. Increases in unrealized
appreciation can be categorized to an income category that you exclude from
your budget. That keeps it from skewing your income statement. Likewise, you
may choose to (or not to) exclude the unrealized appreciation from your
balance sheet.
What someone paid recently for a house like yours is relevant to its current
value; what you paid for it is not. Ask a friendly real estate agent about
comparative sales records. You don't have to provide much in the way of
personal information. The size, number of bedrooms and bathrooms, etc., of
your house are public information because they're on property tax lists.
