Consider the following for commenting on Marketing Time:
SEE USPAP ADVISORY OPINION 7 – (Page 74)
As you know it is a requirement of the USPAP that the appraiser make comment with respect to estimated Exposure Time in all market value appraisal assignments.
Exposure Time is an expression of the length of time properties were listed for sale prior to the consummation of a sale, which occurred in the past. Marketing Time is an estimate of what is likely to occur in the future. Exposure Time can be easily calculated because you typically have data to support your conclusions, while Marketing Times pertain to future events. Often in a stable market Marketing Time and Exposure Time are very similar.
An estimate of marketing time is often an assignment condition, but it is not a requirement of USPAP.
The reasonable marketing time is an opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal.
Clients concerned with marketing real or personal properties who obtain a market value appraisal as part of their decision-making process should be aware that it may be inappropriate to assume that the value remains stable during the marketing period.
When value is predicated on a marketing time that differs from the subject’s reasonable exposure time the resulting value will not necessarily be market value.
To assist our members in developing adequate Marketing Time statements for use in your reports in these volatile times we are offering the following statement framework for use in your reports. Please ensure that you modify the following statement to adequately reflect the subject market area, and the specific appraisal assignment being completed:
“The comparable sales used in this report had exposure times of XxX to XxX days. Although according to MLS statistics in the subject’s market area, for the subject property type and price range, the average exposure time for the last quarter was XxX days. Based on the previous analysis, the appraiser has concluded a reasonable exposure time of XxX days to XxX days. However due to the recent state of the Canadian economy, States of emergency, the cost and availability of credit, employment uncertainty, and other market forces being impacted by the Co-Vid 19 Virus, it is reasonable to expect a much longer marketing time than what would be indicated by historical exposure times.”