Exposure Time-USPAP

[CaliforniaNative]

I was wondering if standard 1-1 C 4, requiring Exposure Time is reported sufficiently by the neighborhood section Marketing Times of the 1004, or is a separate statement required? Or does the 1004MC cover it?

 

[Terrel L. Shields]

The nature of your question suggests you have no better understanding of this BS in USPAP trying to differentiate between the SIGNIFICANCE of "Exposure Time" v. "Marketing Time". Yes, I am bright enough to figure out the difference. I am too dumb to understand why USPAP makes a big issue of it since we have to have some idea of one to figure the other....or is that visa versa? If I don't know the exposure time of the sales how do i calculate the marketing time of the subject....and does that really make a big rat's @**. Parsing words is USPAP's long suite.

 

[CaliforniaNative]

The nature of your question suggests you have no better understanding of this BS in USPAP trying to differentiate between the SIGNIFICANCE of "Exposure Time" v. "Marketing Time". Yes, I am bright enough to figure out the difference. I am too dumb to understand why USPAP makes a big issue of it since we have to have some idea of one to figure the other....or is that visa versa? If I don't know the exposure time of the sales how do i calculate the marketing time of the subject....and does that really make a big rat's @**. Parsing words is USPAP's long suite.

Well your tag line is certainly appropriate

 

[Terrel L. Shields]

Well...if I failed to answer your question. I would err on the side of caution and REPORT an exposure time explicitly. .. I think you must DEVELOP an exposure time if doing a market value report, but I am not sure you have to report it... Statement 6 was modified somewhat....

IF your users need explanatory text to understand the difference, it must be explained...clear as mud?...

 

[residentialguy]

Exposure time is just an opinion in retrospect of what you think is "reasonable"...based on sales in the open market. The problem is that these have been all over the board. Is 6 months reasonable...or is the sale that sold in 1 month a more accurate listing price? I'm with Terrel....much to do about nothing. I think they just want to sift out the CDOM with DOM. Just because a house has 700 CDOM doesn't mean that's reasonable. It means the last 5 months before is sold is reasonable because they had it priced too high the 18 months prior.

Reasonable exposure: Develop it and keep it in your file - that's all that is required (unless client requires it or it is necessary for the intended users to understand it). I will point out an unreasonable exposure time of a comp....otherwise I don't mention it. Why giving them another opinion to hang you with?

 

[Jo Ann Meyer Stratton]

Since there are very, very few basements in this area I have used the second line for basements to post exposure time for the subject (if offered on the market) and for each comparable. In my Expanded Comment Section I go into more detail for each comparable. Then in my Scope of Work on the top portion of page 3 I discuss what the marketing time would be for the subject if it was offered for sale based at my opinion of value. Now with UAD we have to post DOM at the top of each grid which was the number days it was marketed prior to the sale. So in UAD speak, exposure time is DOM.

 

[CANative]

I was wondering if standard 1-1 C 4, requiring Exposure Time is reported sufficiently by the neighborhood section Marketing Times of the 1004, or is a separate statement required? Or does the 1004MC cover it?

There is no SR 1-1 (c) (4). There is a comment at the end SR 1-2 (c) (it appears after (c) (iv). It states that if the opinion is market value then the appraiser must also develop an opinion of reasonable exposure time. Exposure time is always prior to the date of value as opposed to market time which is always after the date of value.

You're question pertains to reporting (SR 2) as opposed to development (SR 1). For GSE form reports we're reporting under SR 2-2 (b) - summary reports. See SR 2-2(b)(iii) which states an appraiser must summarize the information to identify the real estate involved include the physical, and ECONOMIC characteristics relevant to the assignment (see the last sentence of the comment which includes the economic attributes of the real estate relevant to the TYPE and DEFINITION of the value and intended use of the appraisal.)

There's also good stuff in 2-2 (b) (vii) and (viii.)

So, IMO, just letting the numbers that pop out of the 1004MC is more like stating the information (restricted use appraisal report) rather than summarizing the information.

 

[Mr Rex]

See FAQ 139.

 

[CANative]

See FAQ 139.

Wudda ya know. I figured it out all by myself!

 

[Lee Lansford]

The 2012-2013 version of the USPAP requires the reporting of exposure time.

I thought that I best share this now for all of those who will be completing the 2012-2013 Update late in 2013.