Exposure time vs marketing time, just for fun

[Fernando]

I explain it this way.
Agents expose it to the market and there's a sufficient amount of time in the market.
Usually, when offer accepted it's the same time as exposure time.
However, when agent put a date when offers are accepted, that's marketing time which is the strategy of the agent.

 

[ZZGAMAZZ]

The definition of value assumes informed buyers and sellers. Informed market participants should know marketing time for active listings, expired, and recent sales.

Exposure time tells the client that as of the effective date the property should have sold for X amount when exposed to the market for X days.

Then in the future when/if market conditions change, the client will know that if the DOM is fewer/greater than the market value exposure time, they will know if they should continue marketing to get a higher price or accept a lower price.

Possibly a silly question, but can we presume that X must = Opinion of Value?

 

[glenn walker]

Possibly a silly question, but can we presume that X must = Opinion of Value?

I would say no but I do not care -- You got to make money not F-around with Non-Sense

 

[VolcanoLvr]

George......thanks for "opening your trench coat" to expose this topic! I have the following info in my Addendum, modified as necessary per the assignment:

DISCUSSION OF EXPOSURE TIME and MARKETING TIME:
The Opinion of Value in this report is linked to the appraiser's opinion of Exposure Time. Per USPAP Std. 1, the opinion of Exposure Time is always presumed to precede the effective date of the appraisal. This is the estimated length of time the Subject property would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date, assuming a competitive and open market. Development of this opinion can be a range based on a) statistical information about days on market; b) information gathered through sales verification; and c) interviews of market participants. Comparable sales and listing CDOM information was entered on the sales grid. Based on that info, the range of Exposure Time is to days, with the appraiser's ET opinion placed approximately at the low end ***mid point ***high end of the range.

Marketing Time is an opinion of the amount of time it might take to sell the Subject property at the concluded market value during a period immediately after the effective date of the appraisal, and can be expressed in a range. In addition to items a) - c) above, it also includes analysis of anticipated changes in market conditions. It is a function of price, time, use and anticipated market conditions. Based on this, an opinion of Marketing Time range is noted on the check box in the Neighborhood section of the 1004 Form.

When reviewing reports, I often see appraisers report a specific number of days as the Marketing time in their comments. I choose not to do that, and use the 'range' statement available on the form to be the reported length of time.

 

[ZZGAMAZZ]

I do a lot of Restricted Appraisal Reports for estate purposes. 3 page narrative of appraiser jargen and a value range. No other attachments. Same fee.

The AF will probably tell me to learn USPAP; however, what is the scenario that "allows" for a a Restricted Report? Isn't it used for tax purposes that will involve the IRS as an addition Intended User? What about the tax consultant and/or estate planners?

 

[glenn walker]

The AF will probably tell me to learn USPAP; however, what is the scenario that "allows" for a a Restricted Report? Isn't it used for tax purposes that will involve the IRS as an addition Intended User? What about the tax consultant and/or estate planners?

No A Restricted report is used when your client , rarely a lender, does not want the report or its findings and conclusions shared with other party's. Each one is determined by the users wants and needs. Even Estate and IRS are not necessary restricted and usually other users like CPA-Accounts and Attorneys are users. The appraiser has to ask the client what the use is for and who will be using it.

 

[ZZGAMAZZ]

No A Restricted report is used when your client , rarely a lender, does not want the report or its findings and conclusions shared with other party's. Each one is determined by the users wants and needs. Even Estate and IRS are not necessary restricted and usually other users like CPA-Accounts and Attorneys are users. The appraiser has to ask the client what the use is for and who will be using it.

When a client says that no other intended users are involved, the next sentence is " . . . so this is the value that is needed . . . "

 

[glenn walker]

When a client says that no other intended users are involved, the next sentence is " . . . so this is the value that is needed . . . "

Not necessary but if they tell you they nned a certain value , my response is I cannot guarantee any certain value and then ask them how they want to proceed.

 

[George Hatch]

C'mon now, there are other legitimate uses for a less detailed appraisal report. Heck, I've even done some of them for lenders when they decided they weren't going to proceed with the deal and they just wanted something for their loan file and/or to hand to the borrower.

 

[glenn walker]

Thats True

C'mon now, there are other legitimate uses for a less detailed appraisal report.

Question: Is Starting new threads on the same exact Subject against forum rules ? I ask because we now have another Newer Exposure Thread started by a member and it seems to me just to be duplicative and hijacking the ordinal thread. Frankly it irritates me because the duplicate thread always seem to be started by people who seem to want extra- attention or to try and push their definitions.