FIG Commission 9
- Valuation and the Management of Real Estate
About Valuation
Understanding Valuation
Valuation covers a wide range of assets classes
and purposes. A valuation may be required to
initiate a loan on a single residential home or for
a complex infrastructure project that crosses
international boards or possibly the estimate of
value of a transport vehicle (lorry/bus/car) or a
Rembrandt painting. All will require valuation for a
variety of purposes from loan security, insurance,
regulatory and financial reporting. It’s a great and
exciting job being a valuer! Of course, you need
specialist skills for the particular area of
valuation work you are undertaking but the
opportunities are unimaginable.
Valuation is vitally important
The critical role of valuation in the operation
of markets tends to get overlooked. Valuers provide
expert information to the market that allows others
to make decisions based on that advice, the better
the valuation advice the greater the potential for a
better decision to be made in allocating this world
scare resources. To be effective the valuation
profession must be trusted by all parties from the
public through market participants to governments
and regulators.
Maintaining and developing trust in Valuation
Consistency, objectivity and transparency are
fundamental to building and sustaining public
confidence and trust in valuation. In turn their
achievement depends crucially on valuation providers
possessing and deploying the appropriate skills,
knowledge, experience and ethical behaviour, both to
form sound judgments and to report opinions of
value clearly and unambiguously to clients and other
valuation users in accordance with globally
recognised norms.
As the requirements of governments and regulators
progressively increase and the expectations of
valuation users continue to grow, global standards
for valuation have continued to evolve and now take
three different but closely interrelated forms:
Professional standard – centred on ethics
and conduct, underpinned by knowledge and
competence
Technical standards – centred on common
definitions and conventions,
underpinned by consistent application through
recognised approaches
Performance or delivery standards – centred
on rigour in analysis and objectivity of
judgment, backed by appropriate documentation
and clarity when reporting.
Role of FIG Commission 9
FIG Commission 9 focuses on Valuation and plays a
key role in collecting, debating and disseminating
best practice in Valuation. It achieves this by
providing a forum to explore challenges that may not
fit the normal and opportunities to see how new
technology and working practices can influence the
efficiency and professionalism of valuers in a wide
range of circumstances and geographical locations in
every corner of the world.
