An appraisal is required for real estate when the loan amount exceeds:

An appraisal is essential for real estate transactions to establish the value of the property being financed. The requirement for an appraisal typically aligns with the threshold of risk associated with larger loan amounts. In this case, when the loan amount exceeds $50,000, an appraisal ensures that the lender has an accurate estimate of the property's value relative to the loan being extended. This is crucial for mitigating risk, as the lender needs to be confident that the collateral (the property) is worth at least as much as the loan amount. By requiring an appraisal for loans over this specified limit, lenders can make informed decisions based on a concrete valuation, thus protecting both their interests and those of the borrower.