TEGoVA
European Valuation Standards (EVS)
and the ISO/REV valuer certification
and European recognition
Silvia Cappelli
Vice President ASSOVIB
Board Member TEGoVA
Milan 26th June 2014
WHO IS INFLUENCING THE VALUATION
PROFESSION IN EUROPE
THE EUROPEAN GROUP OF VALUERS’
ASSOCIATIONS (TEGOVA)
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59 Member Associations
32 Countries incl Italy (ASSOVIB,CCS, IsIVI, CNGGL)
Representing 70 000 valuers in Europe
European Valuation Standards
Recognised European Valuer (REV)
Minimum Education Requirements
Journal of Recognised European Valuer
REV Research (Valuation Parameters of Retail Properties)
AS
SO
VIB
ASSOVIB
ASSOVIB, founded in July 2010, is the association that brings
together the main property valuation companies providing
valuation services to banks in Italy.
 1500 valuers
 more than 60% of the market of property valuation for
banks
ASSOVIB’s goal is to elevate the market’s transparency and
the quality for the valuation of properties used as collateral
against bank loans
MORTGAGE CREDIT DIRECTIVE (2014)
Reliable Valuation Standards
those developed by the International Valuation Standards Committee, the European
Group of Valuers’ Associations or the Royal Institution of Chartered Surveyors….”
Creditors are responsible
Member States shall require creditors to ensure that those standards are used where they
carry out a property valuation or to take reasonable steps to ensure that those standards
are applied where a valuation is conducted by a third party. Where national authorities
are responsible for regulating independent appraisers who carry out property valuations
they shall ensure that they comply with the national rules that are in place.
Professional Competence and Indipendence of the valuer
Member States shall ensure that internal and external appraisers conducting property
valuations are professionally competent and sufficiently independent from the credit
underwriting process so that they can provide an impartial and objective valuation
ECB Asset Quality Review
The European Central Bank Favours EVS
Above All Other Valuation Standards
“Real estate should be valued in line with European Standards EVS-2012 (Blue Book)
and other international standards such as the Royal Institute of Chartered
Surveyors (RICS) guidelines – where a conflict is seen EVS2012 will apply
The ECB preference for EVS
• EVS are solely concerned with the valuation of real estate, not with
accounting, plant and machinery or intangibles.
• EVS are more risk-sensitive, with special focus on EU banking directives
(Capital Requirements, etc.), and special guidance on market rating and
risk-related criteria for valuations.
• Only EVS provide a standard for Mortgage Lending Value and a detailed
and comprehensive Application for Valuation for Lending Purposes.
AS
SO
VIB
Opinion on the compliance of the
"Guidelines for property assessment as guarantees for
credit exposure"
with current European Valuation Standards (EVS 2012).
EVS Recognised European Valuer
• Guaranteed minimum level of education, experience and competence.
• Awarded by leading valuation associations in Europe
• Enables cross-border real estate investors to identify valuers qualified
to a recognisable European level.
• Opportunity for both large and small valuation firms to tap into pan
European market
• Endorsed by European Property Federation
• Recognised European Valuers display ‘REV’ after their name
RECOGNISED EUROPEAN VALUERS
• Germany:
• Greece:
• France:
• Italy:
• Poland:
• Ireland:
• Russia:
1036
301
242
163
132
129
94
• Romania:
79
• Serbia:
36
• UK:
26
• Latvia:
16
• Norway:
15
• Spain:
13
• Austria:
13
• Netherlands: 5
2 300
THE MARK OF EXCELLENCE IN REAL ESTATE VALUATION IN ITALY
What’s still missing in Italy
• Real compliance
• Only valuers complying with standards
• The indipendence of the valuer from the mortgage lending process
guaranted by a rigourous process
• The valuer’s competence is proved by the certification
• Transactional prices available through online connections
THANK YOU!
www.tegova.org
@Tegova1
@CappelliS