Edition 2020 Ninth edition

I.A. European Valuation Standards
EVS Summary
EVS 1 
Market Value
Valuers must use the following definition of Market Value corresponding to the 
definition in the Capital Requirements Regulation:
"The estimated amount for which the property should exchange on the date of valu-
ation between a willing buyer and a willing seller in an arm's-length transaction after 
proper marketing wherein the parties had each acted knowledgeably, prudently and 
without being under compulsion."
Due to diverging interpretation of 'arm's length transaction' in the various 
language versions of the CRR definition, TEGOVA has a universally usable 
common guidance-definition:
"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."
Valuers must use the following definition of Market Rent:
"The estimated amount for which the property should be leased on the date of val-
uation between a willing lessor and a willing lessee on the terms of the actual or 
assumed tenancy agreement acting independently of each other after proper mar-
keting wherein the parties had each acted knowledgeably, prudently and without 
being under compulsion."
EVS 2 Valuation Bases Other than Market Value
The valuer must establish the purpose for which the valuation is required before 
using any basis of value other than Market Value.
Save as required by European and national law and regulation in any particular 
case, the valuer must only use recognised bases of valuation that are compatible 

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I.A. - EVS Summary
European Valuation Standards 2020
with the purpose of the valuation and, in doing so, honour the principles of trans-
parency, coherence and consistency.
Such other bases of value may need to be used as required by law, circumstances 
or a client's instructions where the assumptions underpinning Market Value are 
not appropriate or cannot be met. The result will not be a Market Value.
EVS 3 The Qualified Valuer
Each valuation carried out in accordance with these Standards must be undertak-
en by a Qualified Valuer.
Valuers will at all times maintain the highest standards of honesty and integrity 
and conduct their activities in a manner not detrimental to their clients, the public, 
their profession, or their respective national professional valuation body.
The valuer must be able to show professional skill, knowledge, diligence and 
ethical behaviour appropriate to the type and scale of valuation and must disclose 
any factor which could compromise an objective assessment. Each valuation must 
provide an informed and independent opinion of value supported by a recognised 
basis or bases of valuation.
EVS 4 The Valuation Process
The terms of engagement and the basis on which the valuation will be undertaken 
must be set out in writing and agreed before the valuation is reported.
The valuation must be researched, prepared and presented in writing to a profes-
sional standard. The work undertaken must be sufficient to support the opinion 
of value reported.
Data retained following the submission of a valuation must be sufficient to enable 
verification that the analysis and evaluation undertaken in the approach, or ap-
proaches, to providing the opinion of value reported were sufficient for the type 
and scale of valuation.
EVS 5 Reporting the Valuation
The valuation must be presented in clear written form to a professional standard, 
transparent as to the instruction, purpose, approaches, bases, methods and con-
clusions of the valuation, as well as to the use to which it is to be put, as shown in 
the agreed terms of engagement.

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European Valuation Standards 2020
I.A. - EVS Summary
25
EVS 6 Valuation and Energy Efficiency
A legal obligation to renovate a building to a higher level of energy efficiency by a 
fixed date or at a certain inflection point (e.g. rental, sale) creates an unavoidable 
major cost that impacts Market Value, as the owner at that date or inflection point 
will have to pay for renovation works.
Valuers must be aware of these legal deadlines and inflection points and when 
they appear, must estimate the cost of a renovation deep enough to meet the re-
quired new level of energy efficiency or future requirements that are sufficiently 
close to coming into force and consider the extent to which these costs affect the 
Market Value at the date of valuation.

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European Valuation Standards 2020
I.A. - EVS 1: Market Value
27
EVS 1 Market Value
Valuers must use the following definition of Market Value corresponding to the defini-
tion in the Capital Requirements Regulation:
"The estimated amount for which the property should exchange on the date of valuation 
between a willing buyer and a willing seller in an arm's-length transaction after proper 
marketing wherein the parties had each acted knowledgeably, prudently and without 
being under compulsion."
Due to diverging interpretation of 'arm's length transaction' in the various 
language versions of the CRR definition, TEGOVA has a universally usable 
common guidance-definition:
"The estimated amount for which the property should exchange on the date of valuation 
between a willing buyer and a willing seller acting independently of each other after 
proper marketing wherein the parties had each acted knowledgeably, prudently and 
without being under compulsion."
Valuers must use the following definition of Market Rent:
"The estimated amount for which the property should be leased on the date of val-
uation between a willing lessor and a willing lessee on the terms of the actual or 
assumed tenancy agreement acting independently of each other after proper market-
ing wherein the parties had each acted knowledgeably, prudently and without being 
under compulsion."