What is the difference between exposure time and marketing period in an appraisal?

The distinction between exposure time and marketing period is crucial in the appraisal process. Exposure time refers to the duration that a property would have been exposed to the market before its sale, reflecting past market conditions and trends. This is assessed based on historical data and indicates how long a typical property would need to be on the market to sell at a certain price given the circumstances at the time of the sale.

On the other hand, the marketing period is prospective, focusing on how long it is expected to take to sell a property in the current market environment. It includes considerations of current demand, pricing strategies, and overall market conditions that could affect the time needed to sell a property today.

Understanding this difference is essential for appraisers as it helps in providing an accurate valuation and setting appropriate expectations for clients regarding the sale of their property. This prospective view is essential for effective pricing and marketing strategies in the current real estate landscape.