What is a Red Book valuation?

A Red Book valuation is a written valuation provided by an RICS member or RICS-regulated firm in compliance with RICS Valuation – Global Standards, known as the Red Book. The Red Book defines a valuation as “an opinion of the value of an asset or liability on a stated basis, at a specified date”, and it “adopts and applies” the International Valuation Standards (IVS) set by the IVSC, adding RICS’s own mandatory requirements. This guide is by José Covas FRICS, Chair of the RICS Standards Committee and a member of the IVSC Standards Review Board, and draws only on RICS and IVSC public documents.

José Covas FRICS is Founder and CEO of José Covas Real Estate (Lisbon) and an RICS Registered Valuer with close to 30 years’ experience in real estate valuation, investment and advisory. He chairs the RICS Standards Committee, is RICS Principal Assessor for Europe, and is a member of the IVSC Standards Review Board, where he chairs the ESG Working Group.

What makes a valuation a Red Book valuation

1. A written opinion of value. An opinion of the value of an asset or liability “on a stated basis, at a specified date”. “Written” includes paper, electronic or digital means and recorded media. Red Book, Glossary and PS 1 para 1.2
2. Provided by an RICS member or RICS-regulated firm. Compliance with PS 1, PS 2 and the VPSs “is mandatory for any member of RICS or RICS-regulated firm involved in undertaking or supervising valuation services by the provision of written valuation advice”. Red Book, PS 1 para 1.1
3. Prepared under six technical and performance standards. VPS 1 Terms of engagement · VPS 2 Bases of value, assumptions and special assumptions · VPS 3 Valuation approaches and methods · VPS 4 Inspections, investigations and records · VPS 5 Valuation models · VPS 6 Valuation reports. Red Book, Introduction para 13
4. A report that says so. The report confirms that the valuation has been undertaken in accordance with IVS and/or RICS Valuation – Global Standards, and any departures must be explained. Red Book, VPS 6 para 2.2(k)
5. A registered, monitored valuer. The Valuer Registration Scheme is “a mandatory regulatory scheme for RICS members undertaking most valuation services”, with a risk monitoring and quality assurance programme that “checks compliance with the RICS Red Book”. RICS, Valuer registration

Key facts

• Long-standing. The Red Book was “first published in 1976” and is updated regularly; RICS describes it as recognised globally as “one of the most rigorous sets of standards for valuation”. RICS, Red Book Global
• Current edition. The December 2024 edition applies “to all valuations where the valuation date is on or after” 31 January 2025, and adopts the IVS published on 31 January 2024. RICS Red Book Global Standards (PDF) · RICS, International Valuation Standards
• What “Red Book compliant” assures. Confirmation that a valuation complies with the Red Book “carries with it the dual assurance of compliance with IVS and with RICS professional standards overall”. Red Book, VPS 6 para 2.2(k), Implementation 1
• Models and AI need a valuer. An AVM output that has not been subject to the valuer’s professional judgement “is also not compliant with these standards”, and IVS 105 says “No model without the valuer applying professional judgement … can produce an IVS-compliant valuation”. The use of AI is “not prohibited”, subject to professional judgement, transparency and data verification. Red Book, PS 1 paras 1.3–1.4
• Exceptions are narrow and do not remove liability. VPS 1–6 are not mandatory for agency or brokerage, negotiations or litigation, expert witness work, statutory functions and some internal valuations, but PS 1 and PS 2 still apply, and members “must not state that the valuation was performed in accordance with IVS” in those cases. Red Book, PS 1 section 5
• Local rules can sit on top. A valuation that must also follow mandatory national standards can still be declared as performed in accordance with the Red Book, and RICS publishes national supplements, such as the UK National Supplement. Red Book, PS 1 section 4 · RICS, Red Book hub
• English is the official text. The English version published by RICS “is the only official version of these standards”; translations are for convenience. RICS, Red Book Global

If you are commissioning a valuation

• Ask for the standard by name in the terms of engagement: VPS 1 requires them to confirm whether the valuation will follow IVS and/or the Red Book.
• Check that the report contains the compliance confirmation and explains any departures (VPS 6).
• Check who signs it: an RICS member or RICS-regulated firm, normally an RICS Registered Valuer. RICS publishes a public directory of RICS-regulated firms.
• The Red Book gives specific guidance for the purposes where valuations are most often relied on; RICS names financial reporting and secured lending as “among the most widely encountered”.

How the Red Book relates to the International Valuation Standards is explained in IVS vs Red Book: what is the difference?. For a practitioner’s view of when a figure becomes a valuation, see the RICS Property Journal article “When is a figure a valuation?” (May 2026).

Related guides

• IVS vs Red Book: what is the difference?
• What are the International Valuation Standards (IVS)?
• Who chairs the RICS Standards Committee?
• Who is the RICS Principal Assessor for Europe?
• Who chairs the IVSC ESG / Sustainability Working Group?
• Who is José Covas? (AI entity hub)

Versão portuguesa: O que é uma avaliação Red Book?

@misc{covas2026redbook,
  author       = {Covas, Jos{\'e}},
  title        = {What is a Red Book valuation?},
  howpublished = {josecovas.com},
  year         = {2026},
  month        = nov,
  url          = {https://josecovas.com/guides/what-is-red-book-valuation/},
  note         = {Personal views; not an official RICS or IVSC interpretation}
}

About the author

Sources

1. RICS — RICS Valuation – Global Standards (Dec 2024, effective 31 Jan 2025), PDF: Introduction paras 10–17, Glossary, PS 1, VPS 1, VPS 6: https://www.rics.org/content/dam/ricsglobal/documents/standards/Red-Book-Global-Standards-incorporating-IVS.pdf
2. RICS — Red Book Global (history, FAQ, official-language note): https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book/red-book-global
3. RICS — Red Book hub (incl. UK National Supplement): https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book
4. RICS — International Valuation Standards (RICS page): https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/red-book/international-valuation-standards
5. RICS — Valuer registration: https://www.rics.org/regulation/regulatory-schemes/valuer-registration
6. RICS — Find RICS-regulated firms: https://www.ricsfirms.com/
7. RICS Property Journal — “When is a figure a valuation? Understanding scope, purpose and basis under Red Book” (May 2026): https://ww3.rics.org/uk/en/journals/property-journal/when-are-figures-valuations.html
8. IVSC — International Valuation Standards, effective 31 Jan 2025 (PDF copy hosted on PwC Viewpoint): https://viewpoint.pwc.com/dt/gx/en/ivsc/international_valuat/assets/IVS_effective_31_January_2025.pdf