Edition 2020 Ninth edition

---

9
TH
EDITION — 2020

---

Ninth edition
ISBN 9789081906050 
© TEGOVA

---

European Valuation Standards 2020
Contents
3
CONTENTS
Preface 
11
Introduction 
15
Members of the European Valuation Standards Board, Secretariat 17
Acknowledgements 
19
I. European Valuation Standards and Guidance Notes 21
I.A. European Valuation Standards 
23
EVS 1 
Market Value 
27
1. Introduction 28
2. Scope 28
3. European Valuation Standard 1 — Definition of Market Value 
29
4. Commentary 30
EVS 2 Valuation Bases Other than Market Value 
43
1. Introduction 44
2. Scope 44
3. Basis of value 
44
4. Fair Value 
44
5. Special Value 
46
6. Investment Value 
47
7. Mortgage Lending Value 
49
8. Insurable Value 
50
9. Value for local and national taxation purposes 
51
10. Values for compulsory purchase and/or compensation 
51

---

4
Contents
European Valuation Standards 2020
EVS 3 The Qualified Valuer 
53
1. Introduction 54
2. Scope 54
3. General 54
4. The Qualified Valuer 
55
5. Commentary 
57
EVS 4 The Valuation Process 
61
1. Introduction 62
2. Scope 62
3. Terms of engagement 
62
4. Liaison with client's advisers, auditors and others 
64
5. Commentary 64
6. Supporting the valuation 
69
7. Valuation review 
70
EVS 5 Reporting the Valuation 
75
1. Introduction 
76
2. Scope 
76
3. Valuation Report — Definition 
76
4. The Valuation Report 
76
5. The EVS Valuation Report for Residential Property 
78
ANNEX EVS Valuation Report for Residential Property 
81
EVS 6 Valuation and Energy Efficiency 
91
1. Introduction 
92
2. Scope 
93
3. European Valuation Standard 6 — Valuation and Energy Efficiency 
94
4. Commentary 
94
ANNEX Examples of automatic renovation obligations 
97

---

European Valuation Standards 2020
Contents
5
I.B. European Valuation Guidance Notes 
103
EVGN 1 Portfolio Valuation 
103
1. A portfolio valuation 
104
2. Undertaking a portfolio valuation 
105
3. The result 
107
4. Values of the component properties 
108
5. Reporting the Fair Value of a portfolio for accounts 
108
EVGN 2 Fair Value for Financial Reporting 
111
1. Introduction 112
2. Scope 112
3. IFRS 13 Fair Value Measurement 
113
4. IFRS 13 Definition of Highest and Best Use 
113
5. Fair Value hierarchy 
115
6. The role of the valuer in determining Fair Value hierarchy 
118
7. Valuation methods 
118
8. Fair Value compared with Market Value 
120
EVGN 3 Valuation for Insurance Purposes 
123
1. Introduction 124
2. Scope 125
3. Definitions 
125
4. The assessment 
127
5. Reporting 
129
6. Special provisions and recommendations for damage assessment 
130
EVGN 4 Apportionment of Value between Land and Buildings 
133
1. Introduction 134
2. Scope 134
3. Definitions 
135
4. Commentary 
137
5. Apportionment in practice 
139
6. Apportionment between components of buildings
under IFRS accounting standards 
142

---

6
Contents
European Valuation Standards 2020
II. Valuation Methodology 
147
1. Introduction 150
2. Scope 151
3. Definitions 
151
4. Valuation approaches 
151
5. General observations 
152
6. The Comparative Method 
154
7. The Income Approach, methods and models 
156
8. The Cost Approach 
168
9. The Residual Method 
186
10. Using more than one valuation method 
187
11. The final check 
188
III. Valuation and Sustainability 
191
1. Introduction 
194
2. Sustainability 
197
3. Sustainability and property users 
200
4. Developing "green" standards for property 
207
5. Valuation and sustainability 
214
IV. European Valuation Information Papers 
223
EVIP 1 The Impact of the Energy Performance of Buildings Directive
on Property Valuation 
225
1. Introduction 226
2. Scope 226
3. Definitions 
226
4. Commentary 
227

---

European Valuation Standards 2020
Contents
7
EVIP 2 Valuation and Other Issues for Recurrent Property Taxation 
237
1. The European Semester and recurrent property taxation 
240
2. Defining the properties 
241
3. Valuation 241
4. Maintaining the valuation register 
246
5. Revaluation 
246
6. Challenges, disputes and appeals 
249
7. Applying the tax 
250
8. Exemptions and reliefs 
250
9. Higher or additional charges 
252
EVIP 3 Multiple Interests in Residential Property 
255
1. Introduction 256
2. Valuation 
257
3. Multiple ownerships 
257
4. Tenancies and other rights 
260
5. Residential caravan parks 
267
6. Inalienable and unassignable property 
267
EVIP 4 Listed Residential Property (property protected by law) 
271
1. Introduction 
272
2. Scope 
272
3. Terminology 
272
4. Guidance 
273
5. Valuation 
274
EVIP 5 Residential Tenancies and Rent Control 
279
EVIP 6 Residential Valuations and Equity Release 
283

---

8
Contents
European Valuation Standards 2020
EVIP 7 Advanced Statistical Models 
287
1. Definition 
289
2. Introduction 
289
3. Commentary 
291
4. European Banking Authority criteria for advanced statistical models
for valuation and EVS commentary 
292