Which type of buyer does not need to obtain an appraisal?

A cash buyer does not need to obtain an appraisal because they are purchasing the property outright without relying on financing from a lender. When a buyer pays in cash, there is no lending institution involved that would require an appraisal to determine the property's value as part of the loan approval process. The buyer is effectively assuming the risk of the valuation themselves; they can decide whether or not to independently appraise the property for their own information but are not obligated to do so.

In contrast, buyers with a down payment of at least 20% or those with stellar credit may still require an appraisal if they are using financing, as lenders usually want to ensure the property is worth the amount they are lending. Similarly, buyers purchasing investment properties often need an appraisal to satisfy lender requirements, unless they are also cash buyers. Therefore, the necessary distinction lies in the absence of a lender's requirements for cash transactions, making a cash buyer exempt from needing an appraisal.