CERTIFIED GENERAL APPRAISER EXAM
PRACTICE QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025 Q&A | INSTANT
DOWNLOAD PDF
EXAM OVERVIEW & KEY FACTS
The Certified General Appraiser Exam is the AQB National Uniform Licensing and
Certification Examination. It contains 125 total questions, with 110 scored and 15
unscored pretest items. Certified General candidates receive 6 hours to complete the
exam .
Eligibility Requirements :
• 300 qualifying education hours
• 3,000 supervised experience hours over at least 18 months
• Bachelor's degree or higher
Most Tested Content Areas :
• Income Approach (Direct Capitalization, Yield Capitalization, DCF)
• Highest and Best Use Analysis
• Cost Approach
• Sales Comparison Approach
• Appraisal Math and Financial Calculations
• USPAP and Ethics
, • Market Analysis and Valuation Concepts
• Report Writing and Standards
SECTION 1: ECONOMIC & MACROECONOMIC FORCES
Question 1:
Which of the following physical forces would most likely exert a long-term,
macroeconomic influence on regional real estate values rather than just a localized
impact?
A) The localized failure of a municipal water main serving a single subdivision
B) Siltation patterns slowly altering the navigability of a major deepwater commercial
shipping channel
C) A zoning change restricting a single vacant parcel from commercial to agricultural use
D) A temporary seasonal drought affecting residential lawn maintenance guidelines
Answer: B
Rationale: Large-scale geographical and environmental factors, such as siltation of a
major commercial shipping artery, alter the economic viability of entire regions by
affecting trade, shipping, and industrial feasibility. Localized main breaks, single-parcel
zoning changes, and seasonal droughts are micro-level or short-term events that do not
shift regional macroeconomic value trends .
,Question 2:
If the Federal Reserve pursues a tight monetary policy by increasing the reserve
requirement for member banks, what is the most likely direct economic effect on the
local commercial real estate market?
A) An increase in debt coverage ratios due to lower overall interest rates
B) A compression of capitalization rates as equity financing becomes cheaper
C) An upward pressure on mortgage interest rates, reducing overall purchasing power
and transaction volume
D) A dramatic expansion of construction loan availability from local commercial lending
institutions
Answer: C
Rationale: Raising the reserve requirement restricts the amount of money banks can lend,
which decreases the money supply and drives up interest rates. Higher interest rates
increase borrowing costs, reduce purchasing power, raise cap rates, and generally slow
down transaction volume in the commercial real estate sector .
Question 3:
What interdependent economic factors create value?
A) Amenities, assemblage, scarcity, and effective purchasing power
B) Utility, scarcity, desire, and plotage
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and effective purchasing power
Answer: D
Rationale: The four interdependent economic factors that create value are utility (the
ability to satisfy human needs), scarcity (limited supply), desire (need or want), and
effective purchasing power (the ability to pay) .
, Question 4:
Declining employment and rising vacancy rates in a commercial submarket would most
likely result in:
A) A decrease in absorption rates and an increase in reasonable exposure time for
vacant office space
B) An increase in rental rates as landlords attempt to recoup lost revenues
C) A compression of capitalization rates as risk premiums decrease
D) An immediate shift of all local properties to their alternative highest and best use
Answer: A
Rationale: Declining economic indicators such as employment and rising vacancies lead to
lower tenant demand. This decreases the absorption rate (the rate at which vacant space is
leased) and extends the exposure time required to sell or lease a property at market value .
Question 5:
An appraiser is analyzing the supply and demand of multi-family housing in a
submarket. If 1,200 new apartment units are currently under construction, and the
historical absorption rate is 300 units per year, how many years of supply does the
current construction pipeline represent, assuming no change in demand?
A) 0.25 years
B) 1.50 years
C) 4.00 years
D) 12.00 years
PRACTICE QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025 Q&A | INSTANT
DOWNLOAD PDF
EXAM OVERVIEW & KEY FACTS
The Certified General Appraiser Exam is the AQB National Uniform Licensing and
Certification Examination. It contains 125 total questions, with 110 scored and 15
unscored pretest items. Certified General candidates receive 6 hours to complete the
exam .
Eligibility Requirements :
• 300 qualifying education hours
• 3,000 supervised experience hours over at least 18 months
• Bachelor's degree or higher
Most Tested Content Areas :
• Income Approach (Direct Capitalization, Yield Capitalization, DCF)
• Highest and Best Use Analysis
• Cost Approach
• Sales Comparison Approach
• Appraisal Math and Financial Calculations
• USPAP and Ethics
, • Market Analysis and Valuation Concepts
• Report Writing and Standards
SECTION 1: ECONOMIC & MACROECONOMIC FORCES
Question 1:
Which of the following physical forces would most likely exert a long-term,
macroeconomic influence on regional real estate values rather than just a localized
impact?
A) The localized failure of a municipal water main serving a single subdivision
B) Siltation patterns slowly altering the navigability of a major deepwater commercial
shipping channel
C) A zoning change restricting a single vacant parcel from commercial to agricultural use
D) A temporary seasonal drought affecting residential lawn maintenance guidelines
Answer: B
Rationale: Large-scale geographical and environmental factors, such as siltation of a
major commercial shipping artery, alter the economic viability of entire regions by
affecting trade, shipping, and industrial feasibility. Localized main breaks, single-parcel
zoning changes, and seasonal droughts are micro-level or short-term events that do not
shift regional macroeconomic value trends .
,Question 2:
If the Federal Reserve pursues a tight monetary policy by increasing the reserve
requirement for member banks, what is the most likely direct economic effect on the
local commercial real estate market?
A) An increase in debt coverage ratios due to lower overall interest rates
B) A compression of capitalization rates as equity financing becomes cheaper
C) An upward pressure on mortgage interest rates, reducing overall purchasing power
and transaction volume
D) A dramatic expansion of construction loan availability from local commercial lending
institutions
Answer: C
Rationale: Raising the reserve requirement restricts the amount of money banks can lend,
which decreases the money supply and drives up interest rates. Higher interest rates
increase borrowing costs, reduce purchasing power, raise cap rates, and generally slow
down transaction volume in the commercial real estate sector .
Question 3:
What interdependent economic factors create value?
A) Amenities, assemblage, scarcity, and effective purchasing power
B) Utility, scarcity, desire, and plotage
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and effective purchasing power
Answer: D
Rationale: The four interdependent economic factors that create value are utility (the
ability to satisfy human needs), scarcity (limited supply), desire (need or want), and
effective purchasing power (the ability to pay) .
, Question 4:
Declining employment and rising vacancy rates in a commercial submarket would most
likely result in:
A) A decrease in absorption rates and an increase in reasonable exposure time for
vacant office space
B) An increase in rental rates as landlords attempt to recoup lost revenues
C) A compression of capitalization rates as risk premiums decrease
D) An immediate shift of all local properties to their alternative highest and best use
Answer: A
Rationale: Declining economic indicators such as employment and rising vacancies lead to
lower tenant demand. This decreases the absorption rate (the rate at which vacant space is
leased) and extends the exposure time required to sell or lease a property at market value .
Question 5:
An appraiser is analyzing the supply and demand of multi-family housing in a
submarket. If 1,200 new apartment units are currently under construction, and the
historical absorption rate is 300 units per year, how many years of supply does the
current construction pipeline represent, assuming no change in demand?
A) 0.25 years
B) 1.50 years
C) 4.00 years
D) 12.00 years
