Overview§
“Marketing Time” is an important concept in real estate appraisal that estimates how long it will take for a property to be sold at its appraised value after the appraisal date. This term contrasts with “Exposure Time,” which estimates how long it would take for the property to attract offers before the valuation date.
Importance§
Understanding Marketing Time can be crucial for stakeholders such as sellers, buyers, appraisers, and lenders. It provides an estimate that helps manage expectations regarding the time span required to conclude a sale at the appraised market value. Realistic Marketing Time estimates contribute to effective decision-making in marketing, financing, and pricing properties.
Examples§
- Residential Property: If a single-family home is appraised at $300,000 on January 1st, with an estimated Marketing Time of two months, it suggests the property will likely sell for around $300,000 within two months after January 1st.
- Commercial Property: Suppose an office building is appraised at $2,000,000 on March 15th, with a Marketing Time of six months. It implies that under typical market conditions, it may take roughly six months from March 15th to find a buyer at the appraised value.
- Investment Property: An apartment complex appraised at $1,000,000 on June 1st with an estimated Marketing Time of four months suggests the property will take about four months from June 1st to sell at the given valuation.
Frequently Asked Questions§
What factors affect Marketing Time?§
Several factors impact Marketing Time, including market conditions, property type, location, pricing strategy, and listing exposure.
How is Marketing Time different from Exposure Time?§
While Marketing Time estimates how long it will take for a property to sell after the appraisal date, Exposure Time estimates the period the property would need to be listed for sale prior to the appraisal date to achieve the market value.
Can Marketing Time affect appraisal value?§
While Marketing Time itself does not directly affect the appraised value, it provides context that may influence marketing strategies and timelines to achieve the appraised price.
Who benefits from understanding Marketing Time?§
Sellers, buyers, appraisers, and lenders all benefit from an understanding of Marketing Time. It helps in setting realistic expectations, planning financials, and strategizing market approaches.
Related Terms§
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Exposure Time: Definition: The estimated length of time a property would need to be exposed to the market before the valuation date to sell at the appraised value.
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Market Value: Definition: The price at which a property would sell under normal conditions in an open and competitive market.
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Appraisal: Definition: A professional valuation of a property’s market value, typically conducted by a certified appraiser.
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Listing Price: Definition: The price at which a property is listed for sale on the market.
Online Resources§
- Appraisal Institute: www.appraisalinstitute.org
- Investopedia’s Real Estate Basics: www.investopedia.com
- National Association of Realtors: www.nar.realtor
- Zillow: www.zillow.com
References§
- Appraisal Institute. “The Appraisal of Real Estate.” 14th Edition.
- The Appraisal Foundation. “Uniform Standards of Professional Appraisal Practice (USPAP).”
Suggested Books for Further Studies§
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“The Appraisal of Real Estate” by Appraisal Institute
- An authoritative textbook providing comprehensive insights on property valuation.
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“Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- A deep dive into the underlying principles affecting real estate value.
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“Real Estate Appraisal: From Value to Worth” by David Mackmin, Gary Sams
- A thorough guide on modern methods and approaches to real estate appraisal.
