Appraisal of 11.25 acres - vacant land - 1055 wildhurst trail

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BETTENDORF ROHRER KNOCHE WALL,INC. ' EXPOSURE TIME AND MARKETING PERIOD According to the Uniform Standards of Professional Appraisal Practice, exposure time is a historical concept and is always presumed to have occurred prior to the effective date of the appraisal. It is defined as "the estimated length of time 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; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also ' adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions." (Definition from The Dictionary of Real Estate Appraisal, third edition, the Appraisal Institute, pages 126-127.) 1 Marketing period is defined as "the time it takes an interest in real property to sell on the market ' subsequent to the date of appraisal. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to ' expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price ' supportable by concurrent market conditions." (Definition from The Dictionary of Real Estate Appraisal, third edition, the Appraisal Institute, page 221.) ' Because most investors' perceptions and estimates of marketing period are based largely on exposure times that they recently have encountered in similar transactions, it stands to reason ' that there should be some correlation between marketing periods and exposure times. In fact, in the absence of perceived changes in the market or other extenuating circumstances, marketing period and exposure time should be identical. That is to say, if all other things are ' held constant, a property that required an exposure time of one year should be expected to have a marketing period of one year. Differences in the two concepts appear when there is a perceived change in the market. For example, if a property requires an exposure time of one ' year but market conditions appear to be improving, a marketing period of less than one year might be appropriate. Conversely, if market conditions were declining, the marketing period might exceed exposure time. ' 58