A valuer’s guide to EVS 2025

• Structure 1 of 4 · Part I

• Structure 2 of 4 · Part II

The core of the Blue Book: Market Value, valuation bases other than Market Value, the qualified valuer, the valuation process, reporting the valuation, and valuation and energy efficiency. Each standard opens with the rule itself, followed by scope and commentary.

Explains how valuers choose approaches, methods and models: the comparative method, the income approach (direct capitalisation and DCF), the cost approach, and the residual methods, plus guidance on using more than one method and a final check before reporting.

• Structure 3 of 4 · Parts III and VII

• Structure 4 of 4 · Parts IV–VI and VIII–X

Guidance notes and information papers

Education, ethics and EU law

Six European Valuation Guidance Notes (EVGN 1–6) apply the standards to specific situations such as mortgage lending, fair value and agricultural property. Eight European Valuation Information Papers (EVIP 1–8) discuss practical topics from non-transparent markets to flooding.

Minimum Educational Requirements, the European Valuer’s Code of Conduct, valuation and sustainability, the European Code of Measurement, TEGOVA recognition of qualifications, and a detailed review of EU legislation affecting property valuation.

• Core rule 1 of 4 · EVS 1

• Core rule 2 of 4 · EVS 2

Valuers must use the Market Value definition in the EU Capital Requirements Regulation: a willing buyer and seller, arm’s length, after proper marketing, acting knowledgeably, prudently and without compulsion. TEGOVA reads “arm’s length” as acting independently; Market Rent follows suit.

Before using any basis other than Market Value, the valuer must establish the purpose and use only a recognised basis compatible with it. EVS 2 covers fair value, special value, investment value, mortgage lending value, insurable value, and values for taxation and compulsory purchase.

• Core rule 3 of 4 · EVS 3

• Core rule 4 of 4 · EVS 6

The qualified valuer

Energy efficiency

Every EVS valuation must be done by a qualified valuer: a natural person with a relevant degree or recognised qualification and experience, continuing education, local market knowledge, any required licence, adherence to a code of conduct, and professional indemnity insurance where required.

A legal obligation to renovate a building to a higher energy standard by a fixed date or at an inflection point such as sale or rental is a cost that affects Market Value. Valuers must track these deadlines, estimate the renovation cost, and consider its effect on value at the valuation date.

■ Structured summary

The Blue Book, part by part

The left column covers the six standards and the parts that frame them. The right column covers the guidance notes, which apply the standards to particular situations, and the information papers, which discuss practical issues valuers meet in specific markets.

Standards and core parts

EVGNs and EVIPs

EVS 1 Market Value: the CRR-based definitions of Market Value and Market Rent, assumptions, and special assumptions including alternative use value and forced sale value.

EVS 2 Valuation Bases Other than Market Value: fair value, special value, investment value, mortgage lending value, insurable value, and taxation and compulsory purchase values.

EVGN 1 Wartime circumstances: applying EVS to war damage claims and post-war reconstruction costs.

EVGN 2 Mortgage lending: prudently conservative valuation criteria under the revised CRR.

EVS 3 The Qualified Valuer: who may value under EVS, independence and conflicts, continuing professional development, and TEGOVA’s REV and TRV recognition.

EVGN 3 EVS valuation reports: template reports for residential and office property.

EVGN 4 Agricultural property: methodology, Market Value, climate change, and technology and data.

EVS 4 The Valuation Process: written terms of engagement agreed at the start, liaison with auditors and advisers, inspection and evidence, retention of data, and valuation review.

EVGN 5 Fair value for financial reporting: IFRS 13, highest and best use, and the fair value hierarchy.

EVGN 6 Cost assessment for insurance purposes: definitions, the assessment and reporting.

EVS 5 Reporting the Valuation: a clear written report, understandable to a non-specialist, that covers everything in the terms of engagement and states compliance with EVS.

EVIP 1 Valuing in non-transparent markets.

EVIP 2 Portfolio valuation: undertaking it, the result, and reporting fair value for accounts.

EVS 6 Valuation and Energy Efficiency: how mandatory renovation deadlines under EU law feed into Market Value through a residual approach.

Part II Valuation Methodology: comparative, income, cost and residual methods, and using more than one method.

EVIP 3 Apportionment of value between land and buildings.

EVIP 4 Valuation and other issues for recurrent property taxation.

Parts IV–VI: Minimum Educational Requirements, the European Valuer’s Code of Conduct, and Valuation and Sustainability.

Parts VIII–X: the European Code of Measurement, recognition of qualifications by TEGOVA, and EU legislation and property valuation.

EVIP 5 Multiple interests in residential property.

EVIP 6 Listed property, meaning property protected by law.

EVIP 7 Residential tenancies and rent control.

EVIP 8 Flooding and the valuation of property, including possible longer-term effects on value.

• Bases of value 1 of 4 · EVS 2

• Bases of value 2 of 4 · EVS 2

A prudent assessment of the property’s future marketability, taking account of long-term sustainable aspects, normal and local market conditions, and current and alternative uses. Definitions vary between countries, so the valuer must state which definition or legislation is used and that Market Value may differ.

For financial reporting, fair value follows IFRS 13 and will usually be indistinguishable from Market Value (see EVGN 5). Outside financial reporting, EVS defines fair value between specific, identified parties with full knowledge, which can differ from Market Value.

• Bases of value 3 of 4 · EVS 2

• Bases of value 4 of 4 · EVS 1

Investment and special value

Special assumptions and forced sale

Investment value is the value to a known investor based on their own criteria, such as target return and hold period; the report must say it is for that client only. Special value reflects characteristics worth more to a special purchaser than to other market participants.

A special assumption supposes facts different from those verifiable at the valuation date, and the result is a Market Value on that assumption. EVS treats forced sale value as such a case, where the seller must dispose under constraints, unlike the RICS Red Book, which bars the term.

■ Two checklists

Two checklists every EVS assignment needs

EVS 4 sets the minimum terms of engagement, which must be agreed in writing at the start; failing to issue written terms means the valuation does not comply with EVS. EVS 5 sets what the report must deliver.

Terms of engagement (EVS 4)

Valuation report (EVS 5)

1. Parties: the client and any other intended users; the identity and status of the valuer; a declaration that no conflict of interest exists and of any previous involvement.

1. Form: in writing, reliable and understandable to a person with no knowledge of the property or of valuation.

2. Subject and purpose: the purpose of the valuation, the property being valued, and its ownership.

2. Instructions: the instructions, the basis and purpose of the valuation, and every matter agreed in the terms of engagement.

3. Basis and date: the basis or bases of value and a specific date of valuation.

3. Analysis: the analytical process and supporting information, including details of the comparables used.

4. Assumptions and investigation: assumptions, special assumptions and any departures from EVS; the scope and extent of investigations; reliance on information from the client.

4. Opinion: a clear and unequivocal opinion of value as at the date of valuation, with reasoned views on the property’s strengths and weaknesses.

5. Use and liability: restrictions on publication, the extent of any duty of care, and a basic disclaimer.

5. Conflicts: if instructed despite a conflict of interest, a statement of the conflict, that the client was notified, and the measures taken.

6. Compliance and logistics: compliance with EVS, the basis of fees and other costs, and the timetable. Any later amendment must also be recorded in writing.

6. Risks and uncertainty: matters that could affect the figures, such as contamination, deleterious materials or title issues, and comment on unusual market uncertainty.

7. Compliance: a statement that the valuation conforms to EVS, with the extent of and reasons for any departure, and why any key step was omitted. EVGN 3 offers template reports.

• Practice point 1 of 4 · EU law

• Practice point 2 of 4 · Mortgage lending

EVS is designed in lock-step with EU legislation. Its Market Value definition matches the Capital Requirements Regulation, and Part X maps the EU laws that require or shape property valuations, from banking supervision to taxation and the Green Deal.

The revised CRR complements Market Value with a “property value” based on prudently conservative criteria: it excludes expected price increases and adjusts for the risk that current Market Value is above what is sustainable over the loan. EVGN 2 shows how to apply this.

• Practice point 3 of 4 · Sustainability

• Practice point 4 of 4 · Recognition

Climate without artificial value

REV and TRV

TEGOVA’s stance is that valuation must address climate and ESG issues without artificially creating or destroying value. A spot Market Value or a prudent long-term value both need recognisable, market-evidenced impacts; Part VI and EVIP 8 explain how.

Beyond the Minimum Educational Requirements, TEGOVA’s Recognised European Valuer (REV) and TEGOVA Residential Valuer (TRV) programmes give valuers an enhanced status through their national associations, signalling competence to clients across Europe.

✱ Keep learning

Read the official text, then go deeper

This guide is Valuvix’s independent summary of European Valuation Standards 2025; we are not affiliated with or endorsed by TEGOVA. The official text is published by TEGOVA, and some content, such as Parts 5–8 of EVGN 4 on agricultural property, appears only on the TEGOVA website. Use this page to orient yourself, then rely on the official standard, and see our IVS 2025 and RICS Red Book guides for comparison.