Certified General Appraiser Examination
(AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. What is the primary purpose of a real estate appraisal?
A. Determine an opinion of value for a specific purpose
B. Establish property taxes only
C. Guarantee future property prices
D. Replace property inspections
Correct Answer: A
Rationale: An appraisal provides a supported opinion of value for a defined purpose and
effective date.
2. What does a Certified General Appraiser typically appraise?
A. Complex commercial and residential properties
B. Only vacant land
C. Only single-family homes
D. Only government buildings
Correct Answer: A
,Rationale: Certified General Appraisers are qualified to appraise a wide range of real
property types, including complex properties.
3. What is market value?
A. The most probable price a property should bring under typical market conditions
B. The amount the owner originally paid
C. The construction cost only
D. The assessed tax value
Correct Answer: A
Rationale: Market value reflects a reasonable exchange between informed parties under
normal conditions.
4. What is the appraisal principle of substitution?
A. A buyer will not pay more for a property than the cost of acquiring an equally desirable
substitute
B. All properties have identical values
C. Land value never changes
D. Buildings always depreciate equally
Correct Answer: A
Rationale: Buyers compare alternatives when making purchasing decisions.
5. What is the principle of supply and demand?
A. Value is influenced by the relationship between available properties and buyer demand
B. All properties increase equally
,C. Construction costs determine all values
D. Location has no effect on value
Correct Answer: A
Rationale: Market forces directly influence real estate values.
6. What is highest and best use?
A. The reasonably probable and legally permissible use that produces the greatest value
B. The current use only
C. The owner's preferred use
D. The cheapest development option
Correct Answer: A
Rationale: Highest and best use analysis identifies the most valuable feasible use.
7. What are the four tests of highest and best use?
A. Legally permissible, physically possible, financially feasible, maximally productive
B. Location, age, size, condition
C. Cost, income, sales, depreciation
D. Ownership, financing, taxes, zoning
Correct Answer: A
Rationale: These tests determine whether a potential use is appropriate.
8. What is the purpose of market analysis?
A. Study market conditions affecting property value
, B. Determine construction methods
C. Replace valuation approaches
D. Establish ownership
Correct Answer: A
Rationale: Market analysis provides information about supply, demand, and trends.
9. What is the principle of anticipation?
A. Value is influenced by expected future benefits
B. Value depends only on past costs
C. Land has no future value
D. Buildings never lose value
Correct Answer: A
Rationale: Buyers consider expected future advantages when determining value.
10. What is the principle of conformity?
A. Value is enhanced when a property is consistent with surrounding properties
B. All buildings must be identical
C. Older properties are always superior
D. Design has no effect on value
Correct Answer: A
Rationale: Compatibility with surroundings generally supports value.
Sales Comparison Approach
(AGACNP-C) 2026–2027 |
Comprehensive Question Practice Test
with Answers & Rationales| Free Pdf
Access
1. What is the primary purpose of a real estate appraisal?
A. Determine an opinion of value for a specific purpose
B. Establish property taxes only
C. Guarantee future property prices
D. Replace property inspections
Correct Answer: A
Rationale: An appraisal provides a supported opinion of value for a defined purpose and
effective date.
2. What does a Certified General Appraiser typically appraise?
A. Complex commercial and residential properties
B. Only vacant land
C. Only single-family homes
D. Only government buildings
Correct Answer: A
,Rationale: Certified General Appraisers are qualified to appraise a wide range of real
property types, including complex properties.
3. What is market value?
A. The most probable price a property should bring under typical market conditions
B. The amount the owner originally paid
C. The construction cost only
D. The assessed tax value
Correct Answer: A
Rationale: Market value reflects a reasonable exchange between informed parties under
normal conditions.
4. What is the appraisal principle of substitution?
A. A buyer will not pay more for a property than the cost of acquiring an equally desirable
substitute
B. All properties have identical values
C. Land value never changes
D. Buildings always depreciate equally
Correct Answer: A
Rationale: Buyers compare alternatives when making purchasing decisions.
5. What is the principle of supply and demand?
A. Value is influenced by the relationship between available properties and buyer demand
B. All properties increase equally
,C. Construction costs determine all values
D. Location has no effect on value
Correct Answer: A
Rationale: Market forces directly influence real estate values.
6. What is highest and best use?
A. The reasonably probable and legally permissible use that produces the greatest value
B. The current use only
C. The owner's preferred use
D. The cheapest development option
Correct Answer: A
Rationale: Highest and best use analysis identifies the most valuable feasible use.
7. What are the four tests of highest and best use?
A. Legally permissible, physically possible, financially feasible, maximally productive
B. Location, age, size, condition
C. Cost, income, sales, depreciation
D. Ownership, financing, taxes, zoning
Correct Answer: A
Rationale: These tests determine whether a potential use is appropriate.
8. What is the purpose of market analysis?
A. Study market conditions affecting property value
, B. Determine construction methods
C. Replace valuation approaches
D. Establish ownership
Correct Answer: A
Rationale: Market analysis provides information about supply, demand, and trends.
9. What is the principle of anticipation?
A. Value is influenced by expected future benefits
B. Value depends only on past costs
C. Land has no future value
D. Buildings never lose value
Correct Answer: A
Rationale: Buyers consider expected future advantages when determining value.
10. What is the principle of conformity?
A. Value is enhanced when a property is consistent with surrounding properties
B. All buildings must be identical
C. Older properties are always superior
D. Design has no effect on value
Correct Answer: A
Rationale: Compatibility with surroundings generally supports value.
Sales Comparison Approach
