IVS Definitions

The International Valuation Standards (IVS) definitions our valuations reference, quoted from the standard.

Market Value (IVS 104 — Bases of Value)

“Market Value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

— IVS 104 Bases of Value, International Valuation Standards

Gadsden Valuations point estimates are produced consistent with this definition: the model estimates the price a property should achieve in an open-market, arm’s-length sale on the valuation date, calibrated against actual Land Registry sale prices.

Valuation Approaches and Methods (IVS 105)

IVS 105 sets out the three recognised valuation approaches — market, income, and cost — and the requirements for applying them. An AVM applying comparable-transaction evidence, as ours does, sits within the market approach.

Source

The International Valuation Standards are published by the International Valuation Standards Council (IVSC). The full standards are available from the IVSC. In the UK, the RICS Valuation — Global Standards (the “Red Book”) adopt and apply IVS; see our RICS & UK Regulation guide.