How does exposure time relate to the scope of work in an assignment?
Correct Answer
A) It requires market research to support an opinion
Why this is correct: Exposure time—the estimated time required to sell a property at its market value—is an opinion that requires independent market research and analysis, such as reviewing days on market for comparable sales and interviewing market participants. Why the other choices are wrong: "It is supplied by the client with the engagement" is incorrect; the appraiser must develop this opinion. "It is determined after the report is delivered" contradicts proper appraisal procedure. "It requires no analysis beyond the value opinion" is false; it needs separate evidentiary support. Exam tip: Exposure time is a supported opinion, not a given fact. Always analyze market data to estimate it.
Why This Is the Correct Answer
Why this is correct: Exposure time—the estimated time required to sell a property at its market value—is an opinion that requires independent market research and analysis, such as reviewing days on market for comparable sales and interviewing market participants. Why the other choices are wrong: "It is supplied by the client with the engagement" is incorrect; the appraiser must develop this opinion. "It is determined after the report is delivered" contradicts proper appraisal procedure. "It requires no analysis beyond the value opinion" is false; it needs separate evidentiary support. Exam tip: Exposure time is a supported opinion, not a given fact. Always analyze market data to estimate it.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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