Georgia Certified General Appraiser
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
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1. The primary purpose of an appraisal is to:
A. Establish the sales price of a property
B. Estimate market rent
C. Develop an opinion of value
D. Determine replacement cost
Answer: C. Develop an opinion of value
Rationale: The appraisal process is designed to produce a well-supported
opinion of value, not to set prices or rents directly.
2. Market value is best defined as the price:
A. A seller asks for a property
B. A buyer is willing to pay
C. At which a property should sell under typical market conditions
D. Listed in a contract
Answer: C. At which a property should sell under typical market conditions
Rationale: Market value assumes informed parties, reasonable exposure
time, and no undue pressure.
, 3. Which appraisal approach is most applicable to special-purpose
properties?
A. Sales comparison
B. Income capitalization
C. Cost approach
D. Gross rent multiplier
Answer: C. Cost approach
Rationale: Special-purpose properties often lack comparable sales or
income data, making cost most reliable.
4. Highest and best use analysis must consider all except:
A. Legally permissible
B. Physically possible
C. Financially feasible
D. Personally desirable
Answer: D. Personally desirable
Rationale: Highest and best use is an objective market analysis, not based
on personal preference.
5. Which is an example of functional obsolescence?
A. Flood damage
B. Roof deterioration
C. Outdated floor plan
D. Market oversupply
Answer: C. Outdated floor plan
Rationale: Functional obsolescence relates to design or utility deficiencies
within the property.
, 6. In the income approach, net operating income equals:
A. Gross income minus vacancy
B. Gross income minus expenses including debt service
C. Effective gross income minus operating expenses
D. Potential gross income minus taxes
Answer: C. Effective gross income minus operating expenses
Rationale: NOI excludes debt service and income taxes but includes all
operating expenses.
7. Which capitalization method converts a single year’s income into
value?
A. Yield capitalization
B. Discounted cash flow
C. Direct capitalization
D. Band of investment
Answer: C. Direct capitalization
Rationale: Direct capitalization uses one stabilized income figure and a cap
rate.
8. The principle of substitution states that:
A. Older properties are worth less
B. Buyers prefer new construction
C. Value is limited by the cost of acquiring a substitute property
D. Income determines value
Answer: C. Value is limited by the cost of acquiring a substitute property
Rationale: Buyers will not pay more than the cost of a comparable
alternative.
, 9. External obsolescence is usually:
A. Curable
B. Physical
C. Incurable
D. Functional
Answer: C. Incurable
Rationale: External obsolescence arises from outside factors beyond the
owner’s control.
10. Which report type provides the most detail?
A. Restricted Appraisal Report
B. Summary Appraisal Report
C. Appraisal Report
D. Oral report
Answer: C. Appraisal Report
Rationale: The Appraisal Report contains the most comprehensive level of
information.
11. USPAP requires an appraiser to be impartial, objective, and
independent under the:
A. Scope of Work Rule
B. Record Keeping Rule
C. Ethics Rule
D. Competency Rule
Answer: C. Ethics Rule
Rationale: The Ethics Rule governs conduct, management, and
confidentiality.
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. The primary purpose of an appraisal is to:
A. Establish the sales price of a property
B. Estimate market rent
C. Develop an opinion of value
D. Determine replacement cost
Answer: C. Develop an opinion of value
Rationale: The appraisal process is designed to produce a well-supported
opinion of value, not to set prices or rents directly.
2. Market value is best defined as the price:
A. A seller asks for a property
B. A buyer is willing to pay
C. At which a property should sell under typical market conditions
D. Listed in a contract
Answer: C. At which a property should sell under typical market conditions
Rationale: Market value assumes informed parties, reasonable exposure
time, and no undue pressure.
, 3. Which appraisal approach is most applicable to special-purpose
properties?
A. Sales comparison
B. Income capitalization
C. Cost approach
D. Gross rent multiplier
Answer: C. Cost approach
Rationale: Special-purpose properties often lack comparable sales or
income data, making cost most reliable.
4. Highest and best use analysis must consider all except:
A. Legally permissible
B. Physically possible
C. Financially feasible
D. Personally desirable
Answer: D. Personally desirable
Rationale: Highest and best use is an objective market analysis, not based
on personal preference.
5. Which is an example of functional obsolescence?
A. Flood damage
B. Roof deterioration
C. Outdated floor plan
D. Market oversupply
Answer: C. Outdated floor plan
Rationale: Functional obsolescence relates to design or utility deficiencies
within the property.
, 6. In the income approach, net operating income equals:
A. Gross income minus vacancy
B. Gross income minus expenses including debt service
C. Effective gross income minus operating expenses
D. Potential gross income minus taxes
Answer: C. Effective gross income minus operating expenses
Rationale: NOI excludes debt service and income taxes but includes all
operating expenses.
7. Which capitalization method converts a single year’s income into
value?
A. Yield capitalization
B. Discounted cash flow
C. Direct capitalization
D. Band of investment
Answer: C. Direct capitalization
Rationale: Direct capitalization uses one stabilized income figure and a cap
rate.
8. The principle of substitution states that:
A. Older properties are worth less
B. Buyers prefer new construction
C. Value is limited by the cost of acquiring a substitute property
D. Income determines value
Answer: C. Value is limited by the cost of acquiring a substitute property
Rationale: Buyers will not pay more than the cost of a comparable
alternative.
, 9. External obsolescence is usually:
A. Curable
B. Physical
C. Incurable
D. Functional
Answer: C. Incurable
Rationale: External obsolescence arises from outside factors beyond the
owner’s control.
10. Which report type provides the most detail?
A. Restricted Appraisal Report
B. Summary Appraisal Report
C. Appraisal Report
D. Oral report
Answer: C. Appraisal Report
Rationale: The Appraisal Report contains the most comprehensive level of
information.
11. USPAP requires an appraiser to be impartial, objective, and
independent under the:
A. Scope of Work Rule
B. Record Keeping Rule
C. Ethics Rule
D. Competency Rule
Answer: C. Ethics Rule
Rationale: The Ethics Rule governs conduct, management, and
confidentiality.
