Appraisal on Home If not needed in the contract?

[Carrie Smith]

Hi,

So I'm in the process of buying a home (yay - first investment property).  However, the home appraisal will be on my own home because I'm doing a cash-out refi for the loan.  Because I'm buying the property in cash, there is no appraisal required on the home I am buying.  I'm doing a buy and hold situation where I'll be putting tenants in the property, and the numbers do work.

So, my question is this: Should I go ahead and spend an extra $400 to get an appraisal on the home I am purchasing?  My real estate agent says other than for information, it will not be of value.  My lender suggested it, and of course the home appraisor I talked with suggests it also.  What are your experiences, and thoughts?  If the home inspection falls through, I'll be out an extra $400 as well.

Thanks for your advice!

Carrie