Exposure Time

[NorthTexValuation]

Why not simply reference the Marketing Time check box Page 1 of the 1004?

Uh, maybe because "Marketing Time" and "Exposure Time" are not the same thing?

 

[George Hatch]

Why not simply reference the Marketing Time check box Page 1 of the 1004?
Unless of course you've grossly over or under estimated the subject's value,
it would most probably have sold as quickly/slowly as the average property.

/

That could work when you're appraising something similar to the "average", but that's not always the case.

 

[PropertyEconomics]

Why not simply reference the Marketing Time check box Page 1 of the 1004?
Unless of course you've grossly over or under estimated the subject's value,
it would most probably have sold as quickly/slowly as the average property.

/

I do not believe marketing time and exposure time are the same and reference to the marketing time on the first page would not be correct in my opinion.

Prior to 9/11 the exposure time would have been most probably much shorter than the marketing time one month after 9/11. Perhaps a poor example but perhaps not such a poor example either.

 

[Rich Heyn]

Why not simply reference the Marketing Time check box Page 1 of the 1004?/

I think that's pretty much what the 1993 version of the URAR did. Back when we had the requirement; before we didn't; before we did.

Or is my old-man memory going bad again?

 

[gregb]

See the AI letter, section regarding exposure time.
http://www.appraisalinstitute.org/n.../2011/1-14-2011Commentson4thExposureDraft.pdf

 

[Sulago]

Isn't the Exposure Time for the comparables the same as their DOM ?

Isn't the Marketing Time reported on page 1 based on past sales data ?

 

[gregb]

I don't think this is picky...I think it is significant. There are other threads and other forums where this is a heated area of debate, and many are concerned over liability. If exposure time is retrospective, and all the verbiage is changed the way you stated, then one would think stating the retrospective exposure time would not have an impact on liability for the appraiser since there is no way that someone can go back in time and sell their house.

Don't think this thread needs to go on along as the Negative Market Value
thread, but it may benefit Head Surfer if it does.

 

[Flygirl 152]

Don't think this thread needs to go on along as the Negative Market Value
thread, but it may benefit Head Surfer if it does.

A similar thread HAS been going on for multiple days on another forum. It's the hot topic right now.

 

[PropertyEconomics]

See the AI letter, section regarding exposure time.
http://www.appraisalinstitute.org/n.../2011/1-14-2011Commentson4thExposureDraft.pdf

See Statement 6 in 2012 - 2013 USPAP ... this comment holds no bearing on USPAP while Statement 6 does ...

Im just saying. Its foolish to reason against something that is a requirement now ... reading history will only confuse the issue a bit more rather than help appraisers become compliant with the standards.

 

[Mike Kennedy]

FLASHBACK

APPRAISAL DEVELOPMENT – SCOPE OF WORK ISSUES
F-64 FAQ 2010-2011 Edition

138. EXPOSURE TIME AND MARKETING TIME
Question: What is the difference between exposure time and marketing time?
Response: As defined in STATEMENT No. 6, Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions exposure time is:
the estimated length of time the property interest being appraised would have been
offered on the market prior to the hypothetical consummation of a sale at market value
on the effective date of the appraisal; a retrospective opinion based on an analysis of
past events assuming a competitive and open market.

In contrast, Advisory Opinion 7, Marketing Time Opinions defines marketing time as:
an opinion of the amount of time it might take to sell a real or personal property interest
at the concluded market value level during the period immediately after the effective date
of an appraisal.

In other words, exposure time occurs before the effective date of the appraisal, whereas marketing
time occurs after the effective date.

An estimate of exposure time is required by USPAP for market value appraisal assignments (see Standards Rules 1-2(c)(iv) and 7-2(c)(iv)), whereas an estimate of marketing time is not mandated by USPAP (but may be required by the client and so become assignment conditions in those assignments). For additional guidance, see SMT-6 and AO-7.

* USPAP 2012-13 simply requires reporting the estimate of Exposure Time in each report instead of merely retaining it in a workfile. I suggest reporting it (with the applicable definition in Marketing Conditions, referencing it in the opinion of MV via each utilized Approach to Value, and in the Reconciliation Comments (especially if those comments expand to Addendum pages).