ASK DAN: Answering the Exposure Time Question

By Dan Bradley, SRA, CDEI

McKissock Dan Bradley

Question: Dear Dan, can you please shed some light on the concept of exposure time, and the USPAP requirements that relate to it?

Answer: A lot of appraisers have questions about exposure time. You are certainly not alone. Exposure time is defined in USPAP as:

EXPOSURE TIME: estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market.

Exposure time is an opinion, developed by the appraiser. How do we develop this opinion? Statement on Appraisal Standards Number 6 (SMT-6) in USPAP provides guidance on exposure time.

SMT-6 states:

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