In short, the appraisal process allows an unbiased, professional appraiser to determine the fair market value for a home. Different than the tax value, fair market value is an estimate of the home’s value based on specific interior and exterior aspects, real estate market trends, and comparable/recent sales in the surrounding area. Appraisals are used in buyer-seller transactions, known as purchase-money mortgages, and almost always used in mortgage refinance transactions.