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NEW EUROPEAN VALUATION STANDARD AND GUIDANCE NOTE ON AVMS

November 2, 2017

IMPORTANT

On 28 October 2017 in Marseille, the TEGoVA General Assembly, by near-unanimity, approved the attached European Valuation Standard EVS 6 "Automated Valuation Models (AVMs)" and European Valuation Guidance Note EVGN 11 "The Valuer's Use of Statistical Tools" and rendered them immediately operational. They are now an integral part of European Valuation Standards and are to be complied with by all members of TEGoVA's 71 member associations including all REVs and TRVs.

The essence is of course the Standard proper. It is self-explanatory:


European Valuation Standard 6

AVMs cannot be used to produce a valuation report that complies with EVS independently of a valuation process founded, inter alia, on inspection of the property by the valuer and the application of valuation judgment by the valuer.

Where used, an AVM is never more than a tool contributing to the valuer's estimation of value, for which he remains responsible.


The rest follows from that and the EVGN provides guidance on:

• Preconditions for the use of AVMs
• Limitations on the use of AVMs once the preconditions have been met
• Portfolio valuation

Please also note that by unanimous vote, the General Assembly rendered EVS 2016's European Valuation Information Paper EVIP 6 "Automated Valuation Models (AVMs)" null and void.

There will be analysis and commentary in the January edition of European Valuer.

With kind regards,

Krzysztof Grzesik REV
Chairman of the Board of TEGoVA

Michael P. Reinberg REV
Chairman, European Valuation Standards Board