Exposure time vs marketing time, just for fun

[ZZGAMAZZ]

Well, yeah, the more recent data is going to be more accurate than the dated stuff. TBH, I think this is something appraisers care about, but the clients have not a whole lot of interest in, other than the fact that you put something reasonable in the report.

The past few C.E. courses I recently completed described a SOW based upon the needs/expectations of the Intended Users. That having been said, IMO a typical report could be downsized by 50% or more!!!!!

 

[bnmappraisal]

The past few C.E. courses I recently completed described a SOW based upon the needs/expectations of the Intended Users. That having been said, IMO a typical report could be downsized by 50% or more!!!!!

Yup! I just completed a desktop for a private individual (non lending)
I offered to physically inspect, measure, etc. Nope! He didn't need all that
No problem. So no subject pics, street scene, etc. MLS pics for comps. 3 comps used. Bing bang boom ... Report was about 1/2 as many pages as my typical 1004 UAD report
All about the SOW

 

[andrew81]

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.

 

[andrew81]

Yup! I just completed a desktop for a private individual (non lending)
I offered to physically inspect, measure, etc. Nope! He didn't need all that
No problem. So no subject pics, street scene, etc. MLS pics for comps. 3 comps used. Bing bang boom ... Report was about 1/2 as many pages as my typical 1004 UAD report
All about the SOW

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.

 

[Fernando]

When I look at past few months marketing/exposure time (difference too small and doesn't matter for MLS sales), DOM is about 2 weeks which is same as one year sales data.
Now I see the active and pending listings are a month. That's not a good sign for sellers.

 

[andrew81]

When I look at past few months marketing/exposure time (difference too small and doesn't matter for MLS sales), DOM is about 2 weeks which is same as one year sales data.

Now I see the active and pending listings are a month. That's not a good sign for sellers.

And that is the difference. Good job

 

[J Grant]

Exposure Time Vs. Marketing Time: Helpful Info for Appraisers - McKissock Learning

Get a basic overview of exposure time vs. marketing time and sources that can be used to support an opinion of reasonable exposure time.

www.mckissock.com

 

[George Hatch]

My explanation was better.

 

[glenn walker]

I Guarantee you we never had a Underwriter or Reviewer look at exposure time except in a few rare cases where
it made no sense : Estaimted (DOM )1 to 30 -- Estimated Exposure Time 180 to 210 days . Asked appraiser if his exposure Time Estimate made any sense ? He said no but he really did not understand it. I told him to just make similar or same as marketing time. Hard Stop -Done we had no time to educate people on this issue.

 

[George Hatch]

Suffice it to say it could conceivably cause an appraiser a problem if they opined 2-3 months exposure time for their value conclusion and in the course of taking a loss on the property the lender discovered the real range as of that date was closer to 6-9 months.

At that point a lender could possibly raise the issue "we never would have made this loan at these terms if we had been informed that the market was oversupplied and the exposure time was twice as long as stated in the appraisal. " In that event the appraiser would have no defense for simply blowing that analysis off because they didn't have the 3 minutes it would have taken to look/see.