CERTIFIED GENERAL APPRAISER EXAM QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
The Certified General Appraiser license allows valuation of:
A. All types of real property
B. Only residential properties
C. Only rental units
D. Only farmland
Answer: A
Rationale: Certified General Appraisers can appraise all property types.
2.
USPAP stands for:
A. Uniform Standards of Professional Appraisal Practice
B. United State Property Assessment Plan
C. Universal Standard Property Analysis Program
D. Uniform Sales Property Appraisal Policy
Answer: A
Rationale: Governs appraisal ethics and standards.
3.
Highest and best use must be:
A. Legally permissible, physically possible, financially feasible, maximally productive
B. Only physically possible
C. Only owner-preferred
D. Only zoning-approved
Answer: A
Rationale: All four criteria must be met.
4.
,The income capitalization approach is primarily used for:
A. Investment properties
B. Vacant land only
C. Personal homes
D. Government buildings only
Answer: A
Rationale: Values income-producing properties.
5.
Direct capitalization value formula is:
A. NOI ÷ Cap Rate
B. Rent × Taxes
C. Price ÷ Square footage
D. Cost × depreciation
Answer: A
Rationale: Standard income valuation method.
6.
Net Operating Income (NOI) excludes:
A. Debt service and income taxes
B. Rent income
C. Operating expenses
D. Vacancy losses
Answer: A
Rationale: NOI is before financing costs.
7.
A cap rate represents:
A. Rate of return on investment
B. Loan interest rate
C. Tax rate
D. Insurance rate
Answer: A
Rationale: Measures income return.
, 8.
Sales comparison approach relies on:
A. Comparable market sales
B. Construction costs only
C. Income only
D. Tax records only
Answer: A
Rationale: Market-based valuation method.
9.
Cost approach is most reliable for:
A. New or special-use properties
B. Apartment buildings only
C. Rental homes only
D. Vacant land only
Answer: A
Rationale: When sales data is limited.
10.
Depreciation in appraisal includes:
A. Physical, functional, and external factors
B. Only physical wear
C. Only market changes
D. Only taxes
Answer: A
Rationale: Three types of depreciation.
11.
External obsolescence is:
A. Loss due to outside market factors
B. Building design flaw
C. Physical damage
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
The Certified General Appraiser license allows valuation of:
A. All types of real property
B. Only residential properties
C. Only rental units
D. Only farmland
Answer: A
Rationale: Certified General Appraisers can appraise all property types.
2.
USPAP stands for:
A. Uniform Standards of Professional Appraisal Practice
B. United State Property Assessment Plan
C. Universal Standard Property Analysis Program
D. Uniform Sales Property Appraisal Policy
Answer: A
Rationale: Governs appraisal ethics and standards.
3.
Highest and best use must be:
A. Legally permissible, physically possible, financially feasible, maximally productive
B. Only physically possible
C. Only owner-preferred
D. Only zoning-approved
Answer: A
Rationale: All four criteria must be met.
4.
,The income capitalization approach is primarily used for:
A. Investment properties
B. Vacant land only
C. Personal homes
D. Government buildings only
Answer: A
Rationale: Values income-producing properties.
5.
Direct capitalization value formula is:
A. NOI ÷ Cap Rate
B. Rent × Taxes
C. Price ÷ Square footage
D. Cost × depreciation
Answer: A
Rationale: Standard income valuation method.
6.
Net Operating Income (NOI) excludes:
A. Debt service and income taxes
B. Rent income
C. Operating expenses
D. Vacancy losses
Answer: A
Rationale: NOI is before financing costs.
7.
A cap rate represents:
A. Rate of return on investment
B. Loan interest rate
C. Tax rate
D. Insurance rate
Answer: A
Rationale: Measures income return.
, 8.
Sales comparison approach relies on:
A. Comparable market sales
B. Construction costs only
C. Income only
D. Tax records only
Answer: A
Rationale: Market-based valuation method.
9.
Cost approach is most reliable for:
A. New or special-use properties
B. Apartment buildings only
C. Rental homes only
D. Vacant land only
Answer: A
Rationale: When sales data is limited.
10.
Depreciation in appraisal includes:
A. Physical, functional, and external factors
B. Only physical wear
C. Only market changes
D. Only taxes
Answer: A
Rationale: Three types of depreciation.
11.
External obsolescence is:
A. Loss due to outside market factors
B. Building design flaw
C. Physical damage
