RICS Valuation Standards: a guide to the key changes
The Red Book is recognised throughout the property industry as the leading standard for valuation.
In June 2017 it was updated to incorporate changes to the International Valuation Standards (IVS) to ensure that it continues to reflect best practice, not just in the way a valuation is done, but also in the way professionals conduct themselves when undertaking this work.
RICS global director of valuation, Ben Elder explained: ‘It’s important that technical changes to the Red Book are understood and incorporated by our professionals. This will ensure they comply with IVS and offer their clients confidence that their work is done to the highest standard’.
To support this, RICS has produced a guide to the key changes, which sits alongside the Red Book.
‘Adapting to the technical changes is important, but revisiting the Red Book and reflecting on the aspects which define professionalism, is imperative. In fact, it should be our duty as professionals to ensure this is something we do throughout our careers as the Red Book evolves to meet new needs and challenges,’ Elder explained.
‘The International Valuation Standards provide a framework for carrying out valuations, but the RICS Red Book stands for much more than technical competence. It reflects a professional’s commitment to a code of conduct, including managing conflicts of interest to service standards, such as complaints handling procedures, and to customer protection. It is these aspects of the Red Book which, when grouped together, ensure significant added value to the clients we serve and to the industry as a whole,’ he pointed out.
A guide to key changes
The Red Book 2017 (Global Edition), a guide to key changes and basis of conclusions, explains the rationale behind the updates in the final version and highlights significant changes to ensure you can quickly identify what you must do differently to remain compliant. Specifically, it addresses the main refinements made in consequence of the responses received to the public consultation. It has been produced purely to assist the reader and does not form part of the standards.
‘As you become more familiar with the changes in the Red Book 2017, I encourage you to take the opportunity to review the standard in its entirety, to remind yourself of your obligations as a qualified professional, and to reflect on the enormous value that you offer clients as a result.’ Elder added.
Advancing your career in valuation
RICS Training delivers distance learning programmes to support professions looking to grow a career in valuation. This includes is a foundation course, teaching the main competencies of valuation practice, inspection and measurement, and how to create valuation reports in line with the Red Book and international standards. There are also programs which build on your existing experience, allowing you to gain practical experience whilst specifically focussing on either commercial or residential property. Find out more here.