Final answer:
The lender orders the appraisal in a property transaction to ensure the property is worth the amount of the loan, as the property serves as collateral.
Step-by-step explanation:
The lender is typically the party responsible for ordering an appraisal in a property transaction. Appraisals are an integral part of the mortgage lending process. They are required because the property serves as collateral for the loan, and the lender needs to ensure that the property is worth the amount of money it is lending.
In some cases, a broker or agent may suggest an appraiser, but it is the lender who formally orders the appraisal to maintain an arms-length transaction and to comply with regulations designed to prevent any undue influence on the appraiser. The seller may order their own appraisal to help set a listing price or during negotiations, but this is separate from the appraisal process required by the lender for a loan to a potential buyer.