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Market time vs exposure time

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Lee SW IL

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Jan 15, 2002
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Certified Residential Appraiser
State
Illinois
Please explain the difference in an understandable term.
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Lee,

Don't know how understandable it'll be, but here goes.

Exposure time is the length of time a property would have been offered for sale on the open market assuming the effective date of the appraisal was the property's selling date.

Marketing time is the length of time within which a property could reasonably be expected to sell on the open market assuming you put it on the market on the effective date of your appraisal.

There are some considerations for each case and somewhere within USPAP I seem to recall a discussion of both terms. Hopefully, the folks that know how to 'splain things a little better will help you out. 8)
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Exposure time is the length of time a property would have been offered for sale on the open market assuming the effective date of the appraisal was the property's selling date.

I have always explained "exposure time" as the amount of time the property has been offered for sale until a contract has been accepted.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Lee:

I keep it simple for my simple little head:
MArketing time is how long it will take the subject to sell at the concluded market value levelAfter the effective date

Exposure Time is how long PrEceeding the effective date that the property would have had to be listed in order to sell.

You may wish to refer to USPAP02
Reasonable Marketing time: P 138 line 20+
and
Reasonable Exposure time: P 93 line 3197

and other homework re: Supplimental Standards on
on p 14, 138 (lines 26-29) and 140

Now I am sure you are going to rush right over and grab your USPAP and read these sections in their entirity to insure that you really get it :p :lol: :roll: :wink:
 

George Hatch

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Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
This little diagram is the easiest way I know of to explain the difference:


Timeline:
<--E-----D-----M-->

E = Exposure time, a look into the past
D= Date of valuation or date of sale
M= Marketing Time, a projection into the future

Of the two, estimated Exposure Time is a binding requirement and a necessary element in an estimate of Market Value. Estimates of Marketing Time are not a binding requirement, but might be considered by some clients to be a supplemental.

George Hatch
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
Quite well done, George. And note also, while marketing time is part of the 1004, 2055, and many other forms, exposure time is not. Therefore, you have to comment on expected exposure time in order for an appraisal on the form to be USPAP compliant.
 
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