On Saturday 28 October in Marseille, the TEGoVA General Assembly, by near-unanimity, approved the 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.
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.
EVGN provides guidance on:
• Preconditions for the use of AVMs
• Limitations on the use of AVMs once the preconditions have been met
• Portfolio valuation
There will be analysis and commentary in the January edition of European Valuer.
Danijela Ilic, FRICS, REV
Member of the TEGoVA Board
Member of the TEGoVA European Valuation Practice and Methodology Board (EVPMB)