How does an opinion of marketing time relate to the appraiser's scope of work?
Correct Answer
A) It requires forward-looking analysis of the market
Why this is correct: An opinion of marketing time is a forward-looking estimate of how long it will take to sell the property at its appraised value after the effective date. It requires analyzing current and anticipated market conditions like inventory and absorption rates. Why the other choices are wrong: The choice that it is the same figure as the exposure time is incorrect; exposure time is a backward-looking concept about the time prior to a sale, and the two opinions can differ. The choice that it is supplied by the listing agent is wrong; it is the appraiser's independent opinion. The choice that it requires no analysis beyond the value opinion is false; it is a separate, supported analysis. Exam tip: Marketing time = future projection. Exposure time = historical estimate.
Why This Is the Correct Answer
Option A is correct because marketing time is the time it might take to sell the property interest at the appraised market value during the period immediately after the effective date. Estimating it requires analysis of current and anticipated market conditions such as supply and absorption. It is a forward-looking opinion that becomes part of the scope of work when required.
Why the Other Options Are Wrong
Option B: It is the same figure as the exposure time
Option B says marketing time is the same figure as exposure time. Exposure time looks back to the period before a hypothetical sale on the effective date, while marketing time looks forward, and the two opinions can differ.
Option C: It is supplied by the listing agent involved
Option C says marketing time is supplied by the listing agent. It is the appraiser's own opinion; an agent's view may be one data point, but the appraiser must develop and support the conclusion.
Option D: It requires no analysis beyond the value opinion
Option D says it requires no analysis beyond the value opinion. Marketing time is a separate opinion that needs its own supported analysis of market conditions.
Exposure looks back, marketing looks ahead
Exposure time is the past leading up to the effective date; marketing time is the future after it.
How to use: Use this whenever a question asks you to compare exposure time and marketing time.
Exam Tip
Identify which direction in time the question is about before choosing between exposure-time and marketing-time answers.
Common Mistakes to Avoid
- -Treating marketing time and exposure time as the same figure
- -Adopting a listing agent's estimate without analysis
- -Assuming marketing time comes automatically from the value opinion
Concept Deep Dive
Analysis
This question tests the nature of a marketing time opinion. Marketing time looks forward from the effective date, estimating how long it might take to sell at the appraised value. That makes it a separate analysis of anticipated market conditions within the scope of work.
Background Knowledge
Exposure time is the estimated time a property would have been offered on the market before a hypothetical sale at market value on the effective date. Marketing time is the estimated time to sell after the effective date at the appraised value. Clients, particularly lenders, may request marketing time, and when they do, it requires a forward-looking market analysis.
Real-World Application
A lender asks for a marketing time estimate on a vacation condo. The appraiser studies current inventory, recent absorption and seasonal trends to project how long a sale at her appraised value would likely take.
More USPAP Questions
In a cost approach for an improved property, an appraiser estimates site value by sales comparison, allocation and extraction, then settles on one site-value figure before final reconciliation. How is this step best described?
An extraordinary assumption was reasonably supported, properly used and disclosed in an appraisal report. Later, the assumed information is found to be false. Which conclusion is best supported?
An otherwise applicable valuation approach cannot be developed reliably from the available data. The remaining scope can produce credible assignment results. What should the appraiser do?
May an appraiser use a hypothetical condition in any assignment?
An appraisal has a current effective date and permits an extraordinary assumption if its requirements are met. Which situation involves uncertain information rather than a fact known to be contrary to reality on that date?
Why must a report identify any real property interest that is being excluded from the value opinion?
Which review best helps explain divergent cost, sales-comparison and income indications?
Two value indications are $340,000 and $392,000. What is the difference as a percentage of the lower indication, rounded to one decimal place?
An unauthorized third party requests a lender-client’s report. No due-process or other permitted disclosure exception applies. How should the appraiser respond?
An appraiser proposes to assume there are no hidden defects. Which fact would characterize that assumption as extraordinary under the USPAP 2024 definition, rather than justify dismissing it as routine boilerplate?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Previous Question
When the intended use and applicable assignment requirements permit a value range, what can a supported range communicate?
Next Question
An appraiser's reconciliation comment reads: "Cost new of the improvements plus site value sets the upper limit of value, so the final opinion was capped at the cost indication." Verified, well-adjusted sales of similar homes indicate a higher value. What is the main flaw in this reasoning?