Final answer:
An appraisal, performed by a state certified or licensed appraiser, is not required for all real estate-related financial transactions. However, it is commonly required for mortgage transactions.
Step-by-step explanation:
Appraisals, performed by a state certified or licensed appraiser, are not required for all real estate-related financial transactions. However, they are commonly required for mortgage transactions. Mortgage lenders typically require an appraisal to determine the value of the property being used as collateral for the loan. This helps ensure that the loan amount is appropriate given the property's value.
In addition to mortgage transactions, appraisals may also be required for other real estate transactions, such as refinancing, home equity loans, or home equity lines of credit.
It's important to note that the specific requirements for appraisals may vary depending on the jurisdiction and type of transaction. Therefore, it's always a good idea to consult with a professional, such as a real estate attorney or lender, to understand the specific requirements for a particular financial transaction.