Whether an asset is a single-family home, the balance sheet of a publicly-traded company, a Picasso or a maritime vessel, the economy relies on accurate measurement of an assets worth. Increasingly, the global nature of transactions require international consistency in the valuation of assets “ across all asset types. Investors, regulators, and the public are seeking a level playing field when looking to assess risk and make sound decisions.
Significant steps have been taken to bring already similar standards closer together. The International Valuation Standards Council (IVSC), an independent not-for-profit organization, sets common valuation principles while the local coalition member organizations apply that standard according to local requirements. As a result, lenders, end-users and the general public can take comfort that the approach to valuation is the same whether it is done Los Angeles, Liverpool or Lima.
Whats the matter with data?
A key element of valuation is having the right data available to be able to deliver an opinion of value. RICS has recently introduced new data standards to ensure the quality and consistency of data in both established and emerging markets. Implementing RICS Data Standards ensures that data is effectively captured, verified and shared both within organizations and across external stakeholders.
The use of international standards that set expectations as to how a professional arrived at a value is critical in maintaining trust in the system as the market continues to mature. Once there are enough transactions that can be relied upon with confidence, the data builds upon itself.
Standards without enforcement are meaningless
Developing the standards and stating a commitment to those standards is one thing “ ensuring that professionals work to those standards is another. At RICS, we operate a formal review process for anyone who wishes to challenge a decision we have made. There is an external independent service complaints reviewer who can investigate situations when service does not meet expectations.
In all instances, were committed to increasing transparency, strengthening public confidence and ensuring consistent delivery.
Confidence through professional standards
RICS promotes and enforces the highest professional qualifications and standards in the valuation, development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards “ bringing confidence to markets and effecting positive change in the built and natural environments.