Sometimes in an attempt to teach, we over-explain and nothing is learned. I have had the difference between Exposure Time and Marketing Time explained to me in a live class, in at least two articles, and I read it myself in the new USPAP. Confusing. Confusing. Confusing. Don’t get offended by the title of this article. I consider myself one of those dummies who needs things spelled out. Maybe the rest of you got it, but let me see if I can simply it for people like me.
Exposure Time happens prior to the effective date on the report. Marketing Time happens after. Exposure Time can be calculated because you typically have data to support it. Marketing Time is somewhat of a guess because it is in the future (much like the forecasted value on a Relocation Appraisal for those of you who are familiar with them). It is likely that on most of your reports Exposure Time and Marketing Time will be the same. BE CAREFUL THOUGH; they may be drastically different if, for example, there is some major change in your market that has just happened or is anticipated to happen soon.
There you go! Now, I know the opposite of over-complication is under-simplifying and I am verging on the latter in this post. Certainly, there is much more to know about these two terms, but this is a way to remember the two. Since we are now required to put both a Marketing Time and an Exposure Time on every appraisal, I would suggest you do not gloss this one over. Do some study or take a class, but know what they are. You, of course, are responsible to know.
Now, go create some value!
Dustin Harris is a multi-business owner, but he has found most of his success as a self-employed, residential real estate appraiser. He has been appraising for nearly two decades. He is the owner and President of Appraisal Precision and Consulting Group, Inc., and is a popular author, speaker and consultant. He owns and operates The Appraiser Coach (www.theappraisercoach.com) where he personally advises and mentors other appraisers helping them to also run successful appraisal companies and increase their net worth. He is also the Founder and President of Your Appraisal Office (www.yourappraisaloffice.com) which implements some of the systems he has developed to help lower costs and free up time for real estate business owners. He and his wife reside in Idaho with their four children.