Why is it important for an appraiser to differentiate between exposure time and marketing period?

Differentiating between exposure time and marketing period is crucial for ensuring an accurate measurement of property value. Exposure time refers to the time a property would be expected to be on the market before it is sold, assuming it is priced appropriately, while marketing period is the actual time taken to sell the property once listed. Understanding the distinction allows an appraiser to better assess market conditions and the property's performance within those conditions.

Accurate measurement of property value involves incorporating reliable data about how long properties similar to the one being appraised typically sit on the market before sale. If an appraiser conflates the two terms, it can lead to miscalculations in the valuation process, potentially skewing the property’s perceived worth. This differentiation aids in determining whether market activity reflects a reasonable expectation for the subject property based on its exposure time relative to the actual marketing period experienced.