FIG Commission 9 - Valuation and the Management of Real Estate

Term 1999-2002

Highlights	Commission Chair 1999-2002
Commission 9 has a title of “Valuation and the Management of Real Estate”. These disciplines are quite distinctive from those in the other FIG commissions directly concerned with land surveying and measurement.		Mr. G Michael Yovino-Young

However, Commission 9 shares mutual interests with Commissions 1 – Professional Standards, Commission 2 – Professional Education, and Commission 7 – Cadastre and Land Management. The emergence of a series of joint working groups and collaborations amongst these commissions has been a new direction in recent years.

The Mission Statement for Commission 9, developed in 1998, had a strong focus on identifying valuers and appraisers both within the FIG family of members and in the emerging infrastructures of developing free market economies. The secondary but by no means less important objective was to increase FIG member participation while liaisons with other appraisal and valuation organizations was viewed as a potential source of new memberships in FIG. Some success has been achieved during these past three years. Currently valuation organizations from the Czech Republic, USA, Lithuania, Armenia and Israel are members of the FIG family.

On a more practical level, Commission 9 has had an increasing interest in and concern for the impacts on property rights and values created by adverse environmental conditions that exist in may industrialized and rural parts of the world.

During the tenure of the current leadership in Commission 9, new opportunities have come forth for additional areas of interest. These include the enhanced focus on the Pacific Rim with greater emphasis on the emerging opportunities for a growing valuation profession in China.

Commission 9 has also been fortunate in obtaining grants from professional businesses in Australia and elsewhere, creating a small fund for subsidizing papers and speakers from emerging countries that address the many special problems faced in the process of creating a professional valuation profession and market service where none has existed before.

Progress being made

In 1998, it is estimated that fewer than 10% of the member organizations in FIG included a valuer/appraiser membership component. This meant that of the then 64 member organizations in FIG, perhaps only six or seven organizations included valuers in their membership. Of course, some of these organizations provide more than one participant in the Commission’s activities.

In 2002, it is estimated that 16% of the FIG member organizations have valuers in their ranks, a modest but appreciated increase in the role of Commission 9 in the workings of FIG. The hard core of FIG members who actively participate in Commission 9 are fewer than ten individuals, although a larger number of organizations “designate” a member for Commission 9 without any followup attendance or involvement in the Commissions’ affairs.

Each successive year, the Commission 9 Annual Meeting has witnessed acceptable but cyclical attendance and participation from increasing numbers of member countries, affiliate members and academic members. The record is consistent: From the Congress year 1998 in Brighton, England with 24 attendees at the annual meeting; the following year in Singapore had 12 attendees. Attendance at the 2000 Prague meeting increased to eighteen, with another decline the following year in Seoul with fifteen. It is anticipated that for the Congress in Washington, D.C., attendance will again rise as it did in Brighton.

Terms of Reference

• Valuation - the estimating of value of real estate by valuers and appraisers for various purposes including market value, property taxation, eminent domain, claims of damage or impact on value by some cause or event, and acquisitions for public use or public policy
• Investment market value and investment planning
• Development finance, land use feasibility planning
• Management of property, as a single asset or by management companies
• Management of property systems to ensure efficient use of public and private resources
• Management of public sector property.

Mission Statement

• Identify valuers and appraisers in emerging economies and developing countries and co-ordinate their activities with those of FIG.
• Increase FIG members' participation in valuation theory and methodologies, especially in countries without established real estate market protocols and infrastructure.
• Liaise with other appraisal and valuation organizations and co-operate on matters of mutual interest.
• Create, refine and expand a world dictionary for valuers and appraisers.
• Investigate new evidence of the influence of environmental hazards on property use, value, and demand.

• Annual Report, 2002
• Annual Report, 2001
• Annual Report, 2000
• Annual Report, 1999

Working Group 9.1 - Education and training of valuers in developing economies

Policy Issues

• Disparities and deficiencies in educational programmes.
• Valuation training.

Chair

Bill Rodney (UK)

Working Group 9.2 - Environmental influences on real estate

Policy issues

• Creating a global awareness of the negative influences of contamination and ecological degradation.
• Requirements for new training and protocols for valuation practitioners.

Chair

Michael Yovino Young.

Working Group 9.3 - Research funding

Policy Issues

• Seeking sources of funding for research and delivery of papers.
• Encouraging participation in Commission 9?s educational presentations at FIG working weeks.

Chair

Simon Adcock (Australia)

Working Group 9.4 - Promoting valuation membership of FIG

Policy issues

The under-representation of valuation organisations within FIG.

Chair

David Millard (USA)

Joint Commission 2 and 9 Working Group - Education of valuation in FIG.

Policy issues

• Education on valuation through information network in FIG (an integrated virtual learning environment). Let education move, not people.
• Educational ladder. A stepped way of advancing shall be planned for improving the knowledge of valuation.
  An educational package of valuation should be created and offered on the homepage of FIG. The developing countries and those under transition economy should intentionally be chosen as the target group.
• Co-operation in education / a network for supporting the contact persons.

Chair

Prof. Kauko Viitanen (Finland)