Exposure time is:

Exposure time refers to the period over which a property is exposed to the market for potential sale before the effective date of an appraisal. Understanding this concept is vital for appraisers because it influences the assessment of market value.

The correct interpretation is that exposure time is understood to typically occur before the effective date of the appraisal. Appraisers analyze the sales data during this exposure period to gauge how long a property is available before it is sold. The rationale behind assuming that exposure time precedes the effective date is rooted in the idea that market conditions and buyer interest during the exposure time will impact the perceived value of the property at the time of the appraisal.

In commercial appraisals, as well as residential, exposure time is a critical component of market analysis, making it relevant across the board, rather than being exclusive to commercial properties. Each appraisal may have its unique exposure characteristics, but the general rule is to consider it occurring before the effective date to ensure accurate valuation based on market behavior.

Thus, recognizing exposure time as a historical metric helps appraisers reflect the true market dynamics leading up to the valuation date.