Pat Davitt FIPAV CEO IPAV

Irish Valuation Standards Embracing Europe

‘Irish Valuation Standards Embracing Europe’

• What are the Irish Valuation Standards

• What Valuation Standards Irish Valuers use

• The success of these standards after Brexit

• The influence of the EU on Valuation Standards

• The use of Computerised Valuations

• What Valuation Standards Valuers outside Europe Use

The Great Irish Property Crash of 2007

• Prior the crash very little fuss about Valuation Standards in Ireland

• No National Valuation Standards

• Red Book Standards used by a limited number of Registered Valuers

• No EVS of The Blue Book in Ireland

December 2012 Irish Central Bank Final Paper Lessons Learned - Guiding the

Future

May 2012 IPAV Joined TEGoVA

& introduces The Blue Book EVS

to Ireland

IPAV to Write National Valuation

Standards

2014 EVS Default Valuation standards of Europe Real estate should be valued in line with European Standards EVS-2012 (Blue Book) and other international standards such as the Royal Institute of Chartered Surveyors (RICS) guidelines – where a conflict is seen EVS2012 will apply (for the avoidance of doubt – this should be considered to apply throughout the document).

2017 Over 400 Blue Book

Valuers in Ireland

Irish National Valuation Standards• S.I. No. 142 of 2016 EUROPEAN UNION (CONSUMER MORTGAGE CREDIT AGREEMENTS)

REGULATIONS 2016Property valuation:20. (1) A creditor shall use reliable standards, such as those developed by the International Valuation Standards Council, the European Group of Valuers’ Associations or the Royal Institution of Chartered Surveyors, when carrying out a property valuation of residential immovable property for credit purposes, or take reasonable steps to ensure that reliable standards are applied where a valuation is conducted by a third party.

(2) A creditor shall ensure that internal and external appraisersconducting property valuations are

professionally competent and sufficiently independent from the credit underwriting process so that they can provide an impartial and objective valuation, which shall be documented in a durable medium and of which a record shall be kept by the creditor.

Banking Enquiry Established Nov 2014

• It was To Examine: “the reasons Ireland experienced a systemic banking crisis, including the political, economic, social, cultural, financial and behavioural factors and policies which impacted on or contributed to the crisis and the preventative reforms implemented in the wake of the crisis.”

• Findings January 2016 Include: As the property boom took hold, reliance on informal ‘desktop’ and ‘drive-by’ valuations, which did not involve any physical inspection of a property, became more prevalent.

AVM Automated Valuation Models Is history about to repeat itself ?

• Got this from good friend John Le Tourneau: Aug 2017 Fannie

Mae joins Freddie Mac in allowing appraisal-free mortgages in America.

• Property Inspection Waivers will be allowed on mortgages with low loan-to-value ratios.

• The Reason: The Government Sponsored Enterprise explained the change will allow lenders to offer better efficiency and cost savings.

• What About the Client? What About the Security? What about the Valuer?

Who is driving the property market ???

Who Is Driving the Property Market?

• Is it the Auctioneers or the Valuer’s• Is it the Builders• Is it Supply Shortage• Is it Credit from Banks• Is it the European Central Bank• Is it European Property Prices• As long as any influence is driving there is a rocky road ahead

We Need A Stable Working Property Market

Thank You