Indiana Certified General Appraiser
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. Which appraisal principle states that a buyer will not pay more for a
property than the cost to acquire a similar substitute?
A. Contribution
B. Substitution
C. Conformity
D. Progression
The principle of substitution holds that a rational buyer will choose a
comparable alternative if it costs less.
2. The income approach is most appropriate for valuing:
A. Single-family residences
B. Vacant land
C. Income-producing properties
D. Government buildings
The income approach estimates value based on the property's ability
to generate income.
3. Which type of value is defined as the most probable price in a
competitive market?
A. Investment value
B. Assessed value
C. Market value
D. Insurable value
, Market value reflects the most probable price under fair market
conditions.
4. Gross Rent Multiplier (GRM) is calculated as:
A. Net income ÷ value
B. Value ÷ net income
C. Sale price ÷ gross rent
D. Gross rent ÷ sale price
GRM relates property price to its gross rental income.
5. Which appraisal approach relies heavily on comparable sales?
A. Income approach
B. Cost approach
C. Sales comparison approach
D. Profit method
This approach compares similar properties to estimate value.
6. External obsolescence is best described as:
A. Physical deterioration
B. Functional inefficiency
C. Loss in value due to external factors
D. Poor maintenance
External obsolescence comes from outside influences like zoning or
economic decline.
7. Which report type provides the most detail?
A. Restricted report
B. Summary report
C. Appraisal report
D. Oral report
An appraisal report contains the most comprehensive information
and analysis.
8. Highest and best use must be:
A. Legal only
B. Profitable only
, C. Possible only
D. Legally permissible, physically possible, financially feasible, and
maximally productive
All four criteria must be satisfied.
9. The cap rate is used in which approach?
A. Sales comparison
B. Cost
C. Income
D. Market extraction
Capitalization rate converts income into value.
10. A lease where the tenant pays all expenses is called:
A. Gross lease
B. Modified lease
C. Percentage lease
D. Net lease
Net leases shift expenses to the tenant.
11. Which depreciation is curable?
A. External
B. Physical deterioration (deferred maintenance)
C. Functional obsolescence (incurable)
D. Economic obsolescence
Deferred maintenance can be corrected cost-effectively.
12. The reconciliation step involves:
A. Averaging values
B. Ignoring data
C. Weighing approaches to arrive at final value
D. Choosing the highest value
Reconciliation analyzes reliability of each approach.
13. USPAP stands for:
A. United States Property Appraisal Protocol
B. Uniform Standards of Professional Appraisal Practice
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which appraisal principle states that a buyer will not pay more for a
property than the cost to acquire a similar substitute?
A. Contribution
B. Substitution
C. Conformity
D. Progression
The principle of substitution holds that a rational buyer will choose a
comparable alternative if it costs less.
2. The income approach is most appropriate for valuing:
A. Single-family residences
B. Vacant land
C. Income-producing properties
D. Government buildings
The income approach estimates value based on the property's ability
to generate income.
3. Which type of value is defined as the most probable price in a
competitive market?
A. Investment value
B. Assessed value
C. Market value
D. Insurable value
, Market value reflects the most probable price under fair market
conditions.
4. Gross Rent Multiplier (GRM) is calculated as:
A. Net income ÷ value
B. Value ÷ net income
C. Sale price ÷ gross rent
D. Gross rent ÷ sale price
GRM relates property price to its gross rental income.
5. Which appraisal approach relies heavily on comparable sales?
A. Income approach
B. Cost approach
C. Sales comparison approach
D. Profit method
This approach compares similar properties to estimate value.
6. External obsolescence is best described as:
A. Physical deterioration
B. Functional inefficiency
C. Loss in value due to external factors
D. Poor maintenance
External obsolescence comes from outside influences like zoning or
economic decline.
7. Which report type provides the most detail?
A. Restricted report
B. Summary report
C. Appraisal report
D. Oral report
An appraisal report contains the most comprehensive information
and analysis.
8. Highest and best use must be:
A. Legal only
B. Profitable only
, C. Possible only
D. Legally permissible, physically possible, financially feasible, and
maximally productive
All four criteria must be satisfied.
9. The cap rate is used in which approach?
A. Sales comparison
B. Cost
C. Income
D. Market extraction
Capitalization rate converts income into value.
10. A lease where the tenant pays all expenses is called:
A. Gross lease
B. Modified lease
C. Percentage lease
D. Net lease
Net leases shift expenses to the tenant.
11. Which depreciation is curable?
A. External
B. Physical deterioration (deferred maintenance)
C. Functional obsolescence (incurable)
D. Economic obsolescence
Deferred maintenance can be corrected cost-effectively.
12. The reconciliation step involves:
A. Averaging values
B. Ignoring data
C. Weighing approaches to arrive at final value
D. Choosing the highest value
Reconciliation analyzes reliability of each approach.
13. USPAP stands for:
A. United States Property Appraisal Protocol
B. Uniform Standards of Professional Appraisal Practice
