Certified General
Appraiser Exam Questions And
Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. An appraiser is valuing a mixed-use commercial property in a declining
market. Which appraisal principle is MOST relevant when considering future
income instability?
A. Progression
B. Anticipation
C. Balance
D. Contribution
Answer: B
Rationale: The principle of anticipation states value is influenced by expected
future benefits.
2. A property’s effective gross income is $480,000 and operating expenses are
$180,000. If the capitalization rate is 8%, the indicated value is:
A. $2,400,000
B. $3,000,000
C. $3,750,000
D. $6,000,000
,Answer: C
Rationale: NOI = $300,000. Value = NOI ÷ Cap Rate = 300,000 ÷ 0.08 = $3,750,000.
3. A comparable property sold with seller financing at below-market interest
rates. The appraiser should MOST likely:
A. Ignore the sale
B. Adjust the sale price for financing concessions
C. Increase the capitalization rate
D. Use assessed value instead
Answer: B
Rationale: Non-market financing requires adjustment to reflect cash equivalency.
4. Which approach to value is generally MOST reliable for a newly constructed
special-purpose building?
A. Income approach
B. Cost approach
C. Sales comparison approach
D. Gross rent multiplier
Answer: B
Rationale: Cost approach is most applicable where comparable sales are limited.
5. A property suffers value loss because of heavy traffic noise from a nearby
highway. This is BEST classified as:
A. Functional obsolescence
B. Physical deterioration
C. External obsolescence
D. Economic life
Answer: C
Rationale: External obsolescence originates outside the property boundaries.
,6. An appraiser estimates replacement cost new at $2,000,000 and accrued
depreciation at $500,000. Land value is $600,000. Indicated value is:
A. $1,100,000
B. $1,500,000
C. $2,100,000
D. $2,600,000
Answer: C
Rationale: Value = Land + (Cost New − Depreciation) = 600,000 + 1,500,000.
7. Which type of depreciation is typically incurable?
A. Deferred maintenance
B. Paint deterioration
C. External obsolescence
D. Minor plumbing repairs
Answer: C
Rationale: External obsolescence is usually outside owner control.
8. A lease requiring tenants to pay taxes, insurance, and maintenance is BEST
described as:
A. Gross lease
B. Percentage lease
C. Triple-net lease
D. Graduated lease
Answer: C
Rationale: Triple-net leases transfer most expenses to tenants.
9. A capitalization rate MOST directly reflects:
A. Property tax burden
B. Relationship between income and value
C. Construction cost trends
D. Gross rent potential
, Answer: B
Rationale: Cap rate converts income into value indication.
10. An appraiser discovers environmental contamination affecting a site. FIRST
responsibility:
A. Ignore issue unless client requests analysis
B. Report and analyze impact if competent to do so
C. Remove sales comparison approach
D. Estimate repair cost only
Answer: B
Rationale: USPAP requires disclosure and competency.
11. A property’s market rent exceeds contract rent. The leasehold interest
belongs to:
A. Tenant
B. Landlord only
C. Mortgagee
D. Assessor
Answer: A
Rationale: Favorable leases create positive leasehold value for tenants.
12. Highest and best use analysis must be:
A. Physically possible only
B. Financially feasible only
C. Legally permissible, physically possible, financially feasible, and maximally
productive
D. Based solely on zoning
Answer: C
Rationale: All four tests are required.
Appraiser Exam Questions And
Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. An appraiser is valuing a mixed-use commercial property in a declining
market. Which appraisal principle is MOST relevant when considering future
income instability?
A. Progression
B. Anticipation
C. Balance
D. Contribution
Answer: B
Rationale: The principle of anticipation states value is influenced by expected
future benefits.
2. A property’s effective gross income is $480,000 and operating expenses are
$180,000. If the capitalization rate is 8%, the indicated value is:
A. $2,400,000
B. $3,000,000
C. $3,750,000
D. $6,000,000
,Answer: C
Rationale: NOI = $300,000. Value = NOI ÷ Cap Rate = 300,000 ÷ 0.08 = $3,750,000.
3. A comparable property sold with seller financing at below-market interest
rates. The appraiser should MOST likely:
A. Ignore the sale
B. Adjust the sale price for financing concessions
C. Increase the capitalization rate
D. Use assessed value instead
Answer: B
Rationale: Non-market financing requires adjustment to reflect cash equivalency.
4. Which approach to value is generally MOST reliable for a newly constructed
special-purpose building?
A. Income approach
B. Cost approach
C. Sales comparison approach
D. Gross rent multiplier
Answer: B
Rationale: Cost approach is most applicable where comparable sales are limited.
5. A property suffers value loss because of heavy traffic noise from a nearby
highway. This is BEST classified as:
A. Functional obsolescence
B. Physical deterioration
C. External obsolescence
D. Economic life
Answer: C
Rationale: External obsolescence originates outside the property boundaries.
,6. An appraiser estimates replacement cost new at $2,000,000 and accrued
depreciation at $500,000. Land value is $600,000. Indicated value is:
A. $1,100,000
B. $1,500,000
C. $2,100,000
D. $2,600,000
Answer: C
Rationale: Value = Land + (Cost New − Depreciation) = 600,000 + 1,500,000.
7. Which type of depreciation is typically incurable?
A. Deferred maintenance
B. Paint deterioration
C. External obsolescence
D. Minor plumbing repairs
Answer: C
Rationale: External obsolescence is usually outside owner control.
8. A lease requiring tenants to pay taxes, insurance, and maintenance is BEST
described as:
A. Gross lease
B. Percentage lease
C. Triple-net lease
D. Graduated lease
Answer: C
Rationale: Triple-net leases transfer most expenses to tenants.
9. A capitalization rate MOST directly reflects:
A. Property tax burden
B. Relationship between income and value
C. Construction cost trends
D. Gross rent potential
, Answer: B
Rationale: Cap rate converts income into value indication.
10. An appraiser discovers environmental contamination affecting a site. FIRST
responsibility:
A. Ignore issue unless client requests analysis
B. Report and analyze impact if competent to do so
C. Remove sales comparison approach
D. Estimate repair cost only
Answer: B
Rationale: USPAP requires disclosure and competency.
11. A property’s market rent exceeds contract rent. The leasehold interest
belongs to:
A. Tenant
B. Landlord only
C. Mortgagee
D. Assessor
Answer: A
Rationale: Favorable leases create positive leasehold value for tenants.
12. Highest and best use analysis must be:
A. Physically possible only
B. Financially feasible only
C. Legally permissible, physically possible, financially feasible, and maximally
productive
D. Based solely on zoning
Answer: C
Rationale: All four tests are required.
