Top Ten Common Findings from Valuer Registration ... - RICS Europe

5) Comparables and recording of them, and additionally, referencing andanalysis of themRegistered Valuers can most easily comply with RICS Valuation Standards bykeeping comprehensive records of comparables on file via a dedicated comparabletable template. This would ensure that all comparables are clearly documented andreferenced, together with the relevant analysis and how they influenced the valuation.By employing a suitable file checklist system, the firm can ensure that best practice isfollowed by ensuring the comparables are recorded on file appropriately. This wouldsupport the valuation if there is a claim in the future.6) Quality of reports - meeting RICS minimum requirements and/or client’sspecialist requirementsThe quality of reports can be improved by having a framework or template to followand the firm having a robust quality assurance procedure in place to ensure that allreports meet RICS minimum requirements and/or client’s specialist requirements.Where advice is not clear, poorly structured or non-compliant with RICS ValuationStandards, it can lead to bad decisions by clients and their lenders. Furthermore, itcan make defending a claim very difficult due to any failure to follow prescribedstandards7) File management and processesThe best files show an audit trail of information from first contact with the clientthrough to eventual report, with reasoning clearly demonstrated. A suitable filechecklist approach would ensure that this happens on every file.8) Quality assurance systems and protocolsThe firm should employ a suitable framework or file checklist approach to ensure allRegistered Valuers within the firm are working to the same standard. Whereadministrative support is available within the firm, a dedicated file manager wouldalso ensure that the framework is adhered to and that every task complies with boththe firm’s protocols and RICS Valuation StandardsThe findings identified below apply primarily to the individual Registered Valuer:9) Linking the comparables and the valuation figureIt is fundamental that the file contains a clear process which links the comparableswith the valuation figure. This includes recording of thought processes and clarity ofreasoning used to arrive at the valuation. This is vital should the firm need to make adefence against any future claim and must, therefore, always form part of aRegistered Valuer’s and firms quality control/checking process.10) Valuation calculation or methodologyThis should always be the final part in providing an audit trail in respect of thevaluation figure arrived at. The best files set out a clear valuation calculation withreasoning and process which will assist in defence against any future claims. Thismust, therefore, always form part of a Registered Valuer’s and firm’s qualitycontrol/checking process.RICS would like to pass on their thanks to firms who have participated in thetesting process for their assistance and feedback to date.