EXPOSURE TIME AND MARKETING PERIOD
The Appraisal Standards Board of the Appraisal Foundation has issued advisory opinions on the Uniform Standards of Professional Appraisal Practice (USPAP) for the referenced times. I will address the relationship between the two time periods, discuss factors impacting timing, and conclude with a specific Exposure and Marketing time period.
Generally, Exposure Time relates to what was, retrospectively, and is, currently, occurring in the market, while Marketing Time is a projection of what is likely to occur in the market. Both time periods are determined from the factors of price, time, use, cost and availability of funds. The primary difference between the two time periods in the additional consideration of anticipated trends in market conditions given to marketing time.
Verification of sales data, such as days on the market of both listed and sold properties, together with interviews of market participants, will be considered. Understanding buyers' and sellers' motivations and financial assumptions for a reasonably priced property are also considered. It is important to identify the likely purchaser as well as his financing expectations.
The following profiles present the basis for similarity and difference between exposure and marketing time.
When the market is perceived as stable before and after the effective date of the appraisal, Exposure Time and Marketing Time are generally equal.
When the market is perceived as increasing before and after the effective date of the appraisal, Exposure Time is generally greater than Marketing Time.
When the market is perceived as decreasing before and after the effective date of the appraisal, Exposure before and after the effective date of the appraisal, Exposure Time is generally less than Marketing Time.
When the market is perceived as increasing before the effective date of the appraisal, and decreasing or stable after the effective date, Exposure Time is generally less than Marketing Time.
When the market is perceived as decreasing before the effective date of the appraisal, and increasing or stable after the effective date, the Exposure Time is generally greater than Marketing Time.