While you may never even meet your appraiser as a new homebuyer, the appraisal process is obviously a vital component for both the buyer and lender in the home purchase process.Did you know that neither you, nor your lender has any say in the selection of your appraiser? In the past, if you, your lender or even realtor had a relationship with a local appraiser, they could recommend or electively use that person. But, as a result of the Home Valuation Code of Conduct HVCC, effective with loans originated on or after May 1, 2009, that is no longer the case.Appraisers are chosen from a computerized pool of Texas Certified Residential Home appraisers in your area at random and assigned by your lender. This recent change was initiated in an attempt to help eliminate the rampant appraisal fraud and ability for appraisers to offer “kick-backs” to their referral sources.After selection, your appraiser will be notified to conduct an analysis of your home and determine its current market value. Factors used to determine this value include a comparison of similar properties in and around your neighborhood as well as their sale prices. Many homebuyers don’t realize that their appraiser actually has a fairly accurate estimate of the property’s appraised value by the time they arrive on-site for the physical inspection.Because of this process, an appraisal can be a slightly more complicated when there are few properties to choose from, or if there is an overwhelming amount of foreclosures or short sale listings. As a result, the parameters will be extended for comparable sales.When all research is completed and photos have been collected, the value is submitted to the buyer and lender. If that value is less than the agreed upon purchase price, re-negotiation will begin, usually resulting in the seller reducing their price. On the flip-side, if it meets or exceeds the loan amount, you’ll be getting the keys to your new home in no time!