Which statement is true regarding common reviewer errors in understanding appraisal terms?

The statement that is true regarding common reviewer errors in understanding appraisal terms is that exposure time occurs after the effective date of appraisal. In appraisal practice, exposure time refers to the period during which a property is offered for sale in the market before it is sold. It is relevant to the appraisal in that it helps to assess market conditions and how long it typically takes to sell similar properties. Notably, exposure time is evaluated based on market data and is typically considered to happen before the appraisal's effective date, not after it.

Understanding the distinction between exposure time and marketing period is crucial for appraisers and their reviewers. Marketing period is the time it takes to sell the property once it is on the market, while exposure time considers the time a property is likely to be exposed to the market before it is sold.

The other statements misinterpret these definitions, leading to confusion in applying appraisal principles effectively. Recognizing the correct concept of exposure time helps appraisers more accurately assess the value of a property based on proper market conditions.