Why might an appraisal result be challenged based on exposure time?

An appraisal result might be challenged based on exposure time primarily due to changes in market conditions over time. Exposure time refers to the estimated length of time that a property would be exposed to the market before selling at a market value. If market conditions, such as supply and demand dynamics, interest rates, or economic factors, shift significantly after the appraisal has been conducted, it could render the appraisal less relevant or accurate for the current market situation.

For instance, if the market moves from a seller's market to a buyer's market—where there are more properties available than buyers—the exposure time will likely be longer, thus affecting the value of the property. Appraisers consider exposure time in their analysis; if it significantly changes post-appraisal, the value may no longer hold, leading to a potential challenge of the appraisal’s validity based on outdated or inaccurate assumptions regarding the time the property would typically spend on the market.