21 AUG 2018
Valuation not only plays a pivotal role in real estate but also in financial stability, as to have the right value for a property, whether is your home, a big public infrastructure project or a commercial center, have huge implications in the instability of our economy and therefore in people’s life.
Try to imagine an economy where no qualified and trustful valuers exist. Lenders, mortgage insurers and mortgage brokers would not be able to verify the value of a property during a mortgage underwriting process. Governments would be unable to value their public assets and regulators would have no policies to mitigate risk and guide property transactions, if property values are inaccurate.
That’s why it is not a surprise that highly qualified, educated “valuers” who follow international standards and behave in an ethical way are in great demand these days!
This summer, IFEI (Institut Français de l’Expertise Immobilière) and Business Immo (a leading credible media specialised in real estate in France) presented the results of its latest Property Valuation Barometer. After consulting some of the most important clients of real estate services in the French market, including important banks, insurance companies, investors and end-users, the barometer shows RICS is the organisation better valued by clients in the French market, followed by IFEI and AFREXIM (Association Françaises des Sociétés d’Expertise Immobilière).
One of the main reasons, according to respondents, is certainly the global recognition and perception of the RICS accreditation and label worldwide. Compared to other professional bodies, RICS Registered Valuers are better well known than any other certified valuers. Among the people interviewed, more than 98% named recognised RICS Registered Valuer (VR), the quality assurance mechanism that evidence RICS Registered Valuers comply with the International Valuation Standards such as IVS and Red Book, offering professionals guidance on best practice.
In other European markets, the situation is very similar, investors, financial institutions and employers are also looking for the RICS Registered Valuer logo as a mark they can trust.
In Spain important financial institutions require the RICS certification and regulatory mechanism for valuation as a must for tenders.
In France for example AMF (les Autorités de Marchés Financiers) as well as the ACPR (l’ Autorité de contrôle Prudentiel et de Résolution) recognises the RICS qualification and the Red Book standards for valuations.
In the Netherlands registered valuers are responsible for most investor valuations in this market. Also this year, in this market LaSalle Investment Management adopted the Red Book and VR, as well as the Dutch project developer AM.
Following clients demand, figures shows more and more valuers are interested to register to the RICS VR scheme to show their clients their competence at international level but also their integrity, as RICS performs regulatory reviews and offers guidance to ensure its professionals follow Internationally recognised valuation standards and fulfil their professional obligations in a transparent manner. There are currently over 16,200 registered valuers worldwide, 1185 in continental Europe.
Given this trend, mandatory Valuer Registration already applies in a number of European markets, and by 31 July 2019 all professionals undertaking valuations across Europe will be subject to this mandatory scheme. But to get such a label of trust, valuers will need to show their commitment and competence.
In Poland, one of the latest markets where the mechanism has become compulsory for RICS professionals.
RICS registered valuers are qualified professionals, fully involved in improving the practice, reducing risk and increasing customer confidence in the market and the role of valuers. RICS valuers in Poland must comply with international as well as with local law.
Agnieszka Hryniewiecka-Jachowicz MRICS
Chair of the professional group RICS Valuation.