Exposure

Definition of "Exposure"

Written by

Mary & Scott Davis

Key 2 Your Move Real Estate

Exposure can have various meanings in real estate and insurance, depending on the context. Let’s have a thorough look at these scenarios!

Exposure as property’s orientation

Exposure is the angle or line facing the property’s front. More precisely, it defines the direction of the front of a property or building. You can find the term exposure in real estate sometimes referred to as orientation. 

In real estate transactions, a house’s exposure can be an essential feature along with its immediate environment. Still, we have to clarify that there is front and rear exposure too. We have to be specific about the backyard’s direction or exposure for those interested in rear exposure in certain instances.

Though exposure isn’t a home’s most objective characteristic, it certainly influences a property’s value. Let’s take, for example, a private property facing south. In this particular case, the backyard will face north. Thus, the yard will be exposed to less natural light because the house will shadow the said area. Other circumstances also play a critical role, such as the house’s general placement, height and latitude, trees, and nearby places. 

Why is exposure still a crucial feature in properties?

We can’t neglect the importance of exposure because your garden and the other essentials of your backyard aesthetic need a fair amount of sunlight. Besides, you can’t use your backyard efficiently, for example, in the evening due to limited access to light.

Exposure in property management

Exposure or availability in property management reveals a number, conveyed in percentage, of rental units available in a given property at a specific time. Note! It’s not the same as occupancy! Suppose a property has one hundred units in total, of which only eight are available for rent. Then the building is eight percent exposed (or eight percent available.)

Realtors can maximize exposure. 

Listing agents can increase the amount of exposure to property listings in various ways, such as via local real estate agents, cooperating brokers, and the multiple listing service (MLS). In addition, an emphatic digital online presence goes a long way. Using social media (Twitter, Instagram, Facebook, LinkedIn, etc.), e-newsletters, and press releases are only a few of the most efficient tools to raise exposure to property. 

Secondly, maintaining a stable client base is crucial. Some old clients will always come back for more housing options. For this purpose, agents should get innovative and set up virtual real estate tours, develop their network (handing out business cards), and organize public events.

The hidden secret to successfully selling a house is combining property exposure to highly motivated agents and involved clients kept in a database.

Property loss exposure

People and businesses can be susceptible to losing money on an investment due to high-risk speculation. Exposure is a condition, presenting a strong possibility that a person will suffer a loss resulting from specific damage. Typically, a property can become stolen, damaged, lost, or suffer a substantial decrease in its value. 

Besides, unfortunately, real estate can be subject to property loss exposure. Once a property is destroyed, the financial repercussions can be grave. Homes are exposed to several natural disasters, like floods, fires, earthquakes, and violent storms. Like real property, a piece of land can be liable to be subjected to property loss exposure due to natural forces and soil contamination. The most efficient solution against property loss exposure is signing homeowners or property-liability insurance. Examples of how to convert various units into commercial acres!