Understanding Exposure Time in Real Estate Appraisal

Exposure Time in real estate appraisal terminology is the estimated amount of time it would have taken to sell the subject property before the date of appraised value. This differs from Marketing Time, which refers to the period after the appraisal date.

Real-World Example

Imagine an appraisal conducted with a date of value of July 1, 2022. The appraiser may estimate an exposure time of six months. This estimate implies that, according to the appraiser’s professional judgment, the subject property would typically need about six months of market presence before July 1, 2022, to secure a sale at the appraised value.

In summary, exposure time helps prospective sellers and real estate professionals understand how long a property might need to be listed to achieve a sale price similar to the appraised market value.

Key Points about Exposure Time vs. Marketing Time

• Exposure Time: Indicates the pre-appraisal marketing period required for a property to achieve its estimated market value.
• Marketing Time: Refers to the period after appraisal during which a property is marketed for sale to reach the appraised value.

Frequently Asked Questions

Q: Why is exposure time important in real estate appraisals? A: It helps sellers and real estate agents gauge how long a property may need to be listed before achieving a sale at the appraised value.

Q: How is exposure time estimated by appraisers? A: Appraisers consider market conditions, property characteristics, and comparable sales data to estimate exposure time.

Q: Can exposure time affect the appraised value? A: While exposure time itself doesn’t directly affect the appraised value, it reflects market conditions that may indirectly influence property valuation.

Q: What’s the difference between exposure time and marketing time? A: Exposure time is the pre-appraisal period required for a sale, while marketing time is the post-appraisal period during which the property is marketed for sale.

Related Terms: Marketing Time, Appraised Value, Appraisal Report, Market Analysis, Property Assessment