Why must the exposure time opinion be consistent with the value opinion reported?
Correct Answer
C) The value assumes that exposure already occurred
Why this is correct: The market value definition assumes the property has been exposed on the open market for a reasonable time prior to the effective date. The exposure time opinion estimates that reasonable period. If the reported exposure time is unrealistically short, it contradicts the premise of the value opinion. Why the other choices are wrong: Client approval is not the link. Exposure time does not directly determine the cap rate. While lenders may review both, the core reason is internal consistency of the appraisal premise. Exam tip: Value assumes past exposure; exposure time estimates how long that should have been.
Why This Is the Correct Answer
Why this is correct: The market value definition assumes the property has been exposed on the open market for a reasonable time prior to the effective date. The exposure time opinion estimates that reasonable period. If the reported exposure time is unrealistically short, it contradicts the premise of the value opinion. Why the other choices are wrong: Client approval is not the link. Exposure time does not directly determine the cap rate. While lenders may review both, the core reason is internal consistency of the appraisal premise. Exam tip: Value assumes past exposure; exposure time estimates how long that should have been.
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