Virginia Certified Residential Appraiser
Exam Practice Questions And Correct
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Rationale 2026 Q&A| Instant Download
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1. When estimating the effective age of a property, an appraiser is
primarily concerned with:
A. Chronological years since construction
B. Physical wear and homeowner maintenance relative to similar
properties
C. Year of last sale
D. Neighborhood average age
Rationale: Effective age reflects an estimate of age based on
observable condition and maintenance rather than the chronological
age of the property.
2. The Principle of Substitution supports which appraisal concept?
A. Highest and best use
B. Market value reflects the cost of acquiring an equally desirable
property
C. Depreciation
D. Plottage
Rationale: Substitution maintains that a prudent buyer will not pay
, more for a property when an equally desirable alternative is
available for less.
3. In highest and best use analysis, a use that is physically possible must
also be:
A. Socially acceptable
B. Economically infeasible
C. Legally permissible
D. Consistent with historical use
Rationale: For highest and best use, the proposed use must conform
to zoning, codes, and legal restrictions.
4. An appraiser uses the sales comparison approach primarily to:
A. Estimate reproduction cost
B. Derive an opinion of value by comparing recent similar sales
C. Forecast future income
D. Calculate net operating income
Rationale: The sales comparison approach derives value by analyzing
recent similar property sales and making appropriate adjustments.
5. A 20-year old roof replaced 2 years ago would most likely be analyzed
in the cost approach as:
A. Curable functional obsolescence
B. New contributory improvement with little depreciation
C. External obsolescence
D. Physical deterioration
Rationale: A recently replaced major component generally
contributes value and has little remaining depreciation.
6. Which value principle is demonstrated when improvements to one
property increase the value of neighboring properties?
A. Substitution
B. Contribution
, C. Progression
D. Conformity
Rationale: Progression describes how lesser quality properties
benefit in value when surrounded by higher quality properties.
7. Which type of depreciation cannot be cured economically?
A. Curable physical deterioration
B. External obsolescence
C. Curable functional obsolescence
D. Normal wear and tear
Rationale: External obsolescence is caused by factors outside the
property and generally is not economically fixable.
8. An appraiser reconciles indicated values from different approaches by:
A. Averaging unadjusted values
B. Weighing the reliability and relevance of each approach
C. Using only the most recent sale
D. Eliminating the highest and lowest values
Rationale: Reconciliation involves judgment to determine which
approaches best reflect market conditions.
9. In developing an opinion of market value, the appraiser analyzes
highest and best use as:
A. Vacant only
B. As improved only
C. Both as improved and as vacant
D. Replacement cost new
Rationale: Highest and best use must be determined both as though
vacant and as improved to support valuation.
10. A property with a net operating income of $60,000 and a
market-derived capitalization rate of 8% has a value of:
A. $480,000
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. When estimating the effective age of a property, an appraiser is
primarily concerned with:
A. Chronological years since construction
B. Physical wear and homeowner maintenance relative to similar
properties
C. Year of last sale
D. Neighborhood average age
Rationale: Effective age reflects an estimate of age based on
observable condition and maintenance rather than the chronological
age of the property.
2. The Principle of Substitution supports which appraisal concept?
A. Highest and best use
B. Market value reflects the cost of acquiring an equally desirable
property
C. Depreciation
D. Plottage
Rationale: Substitution maintains that a prudent buyer will not pay
, more for a property when an equally desirable alternative is
available for less.
3. In highest and best use analysis, a use that is physically possible must
also be:
A. Socially acceptable
B. Economically infeasible
C. Legally permissible
D. Consistent with historical use
Rationale: For highest and best use, the proposed use must conform
to zoning, codes, and legal restrictions.
4. An appraiser uses the sales comparison approach primarily to:
A. Estimate reproduction cost
B. Derive an opinion of value by comparing recent similar sales
C. Forecast future income
D. Calculate net operating income
Rationale: The sales comparison approach derives value by analyzing
recent similar property sales and making appropriate adjustments.
5. A 20-year old roof replaced 2 years ago would most likely be analyzed
in the cost approach as:
A. Curable functional obsolescence
B. New contributory improvement with little depreciation
C. External obsolescence
D. Physical deterioration
Rationale: A recently replaced major component generally
contributes value and has little remaining depreciation.
6. Which value principle is demonstrated when improvements to one
property increase the value of neighboring properties?
A. Substitution
B. Contribution
, C. Progression
D. Conformity
Rationale: Progression describes how lesser quality properties
benefit in value when surrounded by higher quality properties.
7. Which type of depreciation cannot be cured economically?
A. Curable physical deterioration
B. External obsolescence
C. Curable functional obsolescence
D. Normal wear and tear
Rationale: External obsolescence is caused by factors outside the
property and generally is not economically fixable.
8. An appraiser reconciles indicated values from different approaches by:
A. Averaging unadjusted values
B. Weighing the reliability and relevance of each approach
C. Using only the most recent sale
D. Eliminating the highest and lowest values
Rationale: Reconciliation involves judgment to determine which
approaches best reflect market conditions.
9. In developing an opinion of market value, the appraiser analyzes
highest and best use as:
A. Vacant only
B. As improved only
C. Both as improved and as vacant
D. Replacement cost new
Rationale: Highest and best use must be determined both as though
vacant and as improved to support valuation.
10. A property with a net operating income of $60,000 and a
market-derived capitalization rate of 8% has a value of:
A. $480,000
