Which statement about exposure time and marketing period is TRUE in a market value appraisal?

In the context of a market value appraisal, understanding the definitions of exposure time and marketing period is key to grasping why exposure time is considered required while marketing period is optional.

Exposure time refers to the estimated length of time a property would be on the market before it sells, assuming it is priced at market value. It is a crucial component when determining the value of a property because it reflects the condition of the market and indicates how long it typically takes for properties similar to the one being appraised to sell. This information helps appraisers arrive at a more accurate market value based on current market conditions.

On the other hand, marketing period involves the actual time that a property is offered for sale and can vary significantly from case to case. It’s influenced by various factors, including marketing strategies and seller motivations. While it provides useful context about the effort to sell the property, it is not as critical as exposure time for the core determination of market value.

Thus, in standard appraisal practice, exposure time is deemed necessary to ensure the appraisal reflects a realistic market value. At the same time, the marketing period offers insights but is not mandatory for the assessment, which is why it is viewed as optional in comparison to exposure time.