Episode Details

Ever wonder why a property’s selling price isn’t always the same as its appraised value? In this episode of pplpod, we peel back the layers of the real estate market to understand the science (and art) of property valuation. We explore the critical distinction between "market value" and "market price" and break down the rigorous methods professionals use to determine what a property is actually worth—whether it's for a mortgage, a tax assessment, or a divorce settlement.

Join us as we discuss:

• The Big Three: A deep dive into the three traditional valuation methodologies: the Sales Comparison Approach (comps), the Cost Approach (replacement value), and the Income Approach (capitalization rates).

• Global Perspectives: How valuation differs around the world, from the "Red Book" standards of the UK’s Royal Institution of Chartered Surveyors (RICS) to the unique German practice of separating land value from building value.

• The Human vs. The Machine: The rise of Automated Valuation Models (AVMs) and AI in 2025, and whether algorithms can truly replace the human judgment required for unique properties.

• Bias in the Market: A look at the ongoing challenges regarding racial bias in appraisal values and the industry's attempts to address them.

Whether you are an investor, a homeowner, or just curious about how the built world is valued, this episode provides the blueprint you need.