Your lender requires an appraisal to tell them that they are loaning on a property that is worth what they're lending on. If you pay all cash you don't need an appraisal.
A professional appraiser will inspect a property and compare it to other similar homes in the area. From there, a fair market value is determined. Unless you plan on paying all cash for a property, you will likely need a home appraisal.
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