Edition 2020 Ninth edition

"The estimated amount for which the property should exchange on the date of valu-
ation between a willing buyer and a willing seller acting independently of each other 
after proper marketing wherein the parties had each acted knowledgeably, pru-
dently and without being under compulsion."
Marriage value
(see synergistic value)
Minimum Educational Requirements (MER)
A syllabus, divided into three levels of knowledge, to be required of all valuers who 
are members of TEGOVA Member Associations.
Mortgage Lending Value
The value of immovable property as determined by a prudent assessment of the 
future marketability of the property taking into account long-term sustainable 
aspects of the property, the normal and local market conditions, the current use 
and alternative appropriate uses of the property.

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390
Glossary of terms
European Valuation Standards 2020
P
Price
The amount asked, offered or paid for a property.
Property
Land and buildings on, below or above ground including pipes, cables and other 
equipment connected thereto.
Q
Qualified Valuer
A natural person, whether self-employed or employed by a valuation company or 
other legal entity who is responsible for undertaking valuations, and who fulfils the 
requirements set out by TEGOVA.
R
Recognised European Valuer (REV)
A valuer recognised by TEGOVA for her/his qualification, knowledge and profes-
sional experience.
Residual value
The estimated amount that an entity would currently obtain from disposal of the 
asset, after deducting the estimated costs of disposal, if the asset were already of 
the age and in the condition expected at the end of its useful life.
S
Special assumption
An assumption made where instructions differ from the actual facts existing at 
the date of valuation.
Synergistic value
A higher value, created when the total value of several properties (or of several 
legal interests in the same property) combined is greater that the value of the 
sum of their parts.

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European Valuation Standards 2020
Glossary of terms
391
T
TEGOVA Residential Valuer (TRV)
A valuer undertaking residential valuations who is recognised by TEGOVA for her/
his qualification, knowledge and professional experience.
Terms of engagement
The specific terms of the contract between the valuer or valuation firm and 
the client.
V
Valuation approach
The fundamental way in which, having regard to the available evidence, the valuer 
considers how to determine the value of the subject property.
Valuation method
The particular procedure, based on one or more valuation approaches, used by the 
valuer to arrive at a determination of value.
Valuation methodology
The process by which a valuer undertakes the valuation of the property, including 
the selection by the valuer of the approach or approaches to be applied, the choice 
of method(s) and the use of models or techniques in order to interpret the valua-
tion inputs and reach conclusions based on them.
Valuation model
A specific technique of data treatment conducted within a valuation method.
Valuation Report
A document detailing the scope, key assumptions, valuation methods, and con-
clusions of an assignment, providing a professional opinion of value supported by 
a recognised basis or bases of valuation within the framework of European Valu-
ation Standards.

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www.tegova.org
The European Group of Valuers’ Associations unites 72 national valuers’
associations from 38 countries representing 70 000 qualified valuers either 
self-employed or employed by specialist consultancies, private sector
companies, government departments or financial institutions both local 
and international. Its European Valuation Standards (EVS) are cited as 
reliable standards for the valuation of residential immovable property for 
mortgage lending purposes in the EU Mortgage Credit Directive and have 
been given precedence over all other standards by the European Central 
Bank in successive editions of its Asset Quality Review manual for the
updating of banks’ real estate collateral values.
Building on the foundation of its predecessors, this ninth edition was 
designed with the particular objective of providing standards that 
are relevant and easily comprehensible to valuers, clients and the
public authorities.
EVS 2020 enhances European valuation practice with:
•
Greater clarity on the key concept of Market Value, compensating flaws 
that have crept into various language versions of EU law;
•
A common European Valuation Report for Residential Property;
•
Energy efficiency valuation upgraded to Standard level;
•
New Guidance Notes and Information Papers on subjects of real 
interest to practic ing valuers;
•
Clarification of the role of advanced statistical models in line with the 
new EBA Guidelines;
•
A comprehensive approach to Valuation Methodology including 
detailed exposition of key concepts such as income approach and 
depreciated replacement cost;
•
A unique, landmark exposé of European Union Legislation and Property 
Valuation enabling practicing valuers to understand how much of the 
real estate regulatory environment is based on EU law, equally valuable 
to European and national supervisory authorities, policy makers 
and academics.
ISBN 9789081906050 
€125

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