General Appraiser Income Approach Newest Practice
Test with 200 Multiple Choice Questions and Correct
Answers Review 2026-2027/ A Practice Test for
General Appraiser Income Approach Test
The Sales Comparison Approach indicates a value of $240,000. The Cost
Approach reflects a value of $205,000. The Income Approach yields $215,000 as
an indicated value. Using the weighted mean methodology and giving 50% weight
to the Income Approach, 30% to the Cost Approach, and 20% to the Sales
Comparison Approach, what is the indicated reconciled value?
$217,000
$219,000
$221,000
$223,000 - ANSWER-$217,000
If an appraiser analyzes the demand in a local area relative to a national
benchmark, that is known as ________.
BTU
BTI
BPI
BPO - ANSWER-BPI
A land capitalization rate is 0.08, and the building capitalization rate is 0.12. Given
a land-to-value ratio of 40%, calculate an overall capitalization rate.
.1010
.1020
1
,.1030
.1040 - ANSWER-.1040
.08 ENTER .40 [X] .12 ENTER .60 [X] [+]
A property has a $450,000 mortgage with annual payments of $52,000. The NOI is
$60,000 and the equity cap rate is .07. What is the total property value, based on
this information?
$564,286
$559,342
$690,804
$572,879 - ANSWER-$564,286
An appraiser may find an older structure's higher energy and maintenance costs
less of a negative factor when:
The buildings are masonry construction
The buildings are frame construction
Retrofitting is an option
There is historical or retro appeal - ANSWER-There is historical or retro appeal
The reporting of the Scope of Work should be included in which part of the
appraisal report?
The transmittal letter
The summary of important facts
The addenda
Any place - ANSWER-Any place
2
,If the sales price of an investment property is $400,000 and the Net Operating
Income is $28,000, what is the indicated rate?
6%
7%
8%
9% - ANSWER-7%
28,000 ENTER 400,000 [÷]
Fees designed to offset the increased burden on infrastructure are what type of
fees?
Police and fire tax
Development
New construction
Impact - ANSWER-Impact
"A yield rate used to convert future payments or receipts into present value"
defines:
Discount rate
Reversion rate
Capitalization rate
Sinking fund - ANSWER-Discount rate
The extra return demanded by investors because the projected cash flow might not
happen is the ______________.
Safe rate
Market rate
Demand rate
3
, Risk premium - ANSWER-Risk premium
In reconstructing an operating statement, what type of expense is one that
accountants use, but appraisers do not?
Depreciation
Pest control
Security
Utilities - ANSWER-Depreciation
When reversion cap rates are used, they should reflect investor expectations
considering which of the following items:
Asset type
Cash flow projections
Age and condition
All of the above should be considered - ANSWER-All of the above should be
considered
The estate that has the right to use an easement is referred to as the:
Owner's estate
Dominant estate
Servient estate
Easement estate - ANSWER-Dominant estate
The dominant estate is the one who actually uses the easement to pass over the
lands of another.
A discount rate is synonymous with the:
Yield rate
4
Test with 200 Multiple Choice Questions and Correct
Answers Review 2026-2027/ A Practice Test for
General Appraiser Income Approach Test
The Sales Comparison Approach indicates a value of $240,000. The Cost
Approach reflects a value of $205,000. The Income Approach yields $215,000 as
an indicated value. Using the weighted mean methodology and giving 50% weight
to the Income Approach, 30% to the Cost Approach, and 20% to the Sales
Comparison Approach, what is the indicated reconciled value?
$217,000
$219,000
$221,000
$223,000 - ANSWER-$217,000
If an appraiser analyzes the demand in a local area relative to a national
benchmark, that is known as ________.
BTU
BTI
BPI
BPO - ANSWER-BPI
A land capitalization rate is 0.08, and the building capitalization rate is 0.12. Given
a land-to-value ratio of 40%, calculate an overall capitalization rate.
.1010
.1020
1
,.1030
.1040 - ANSWER-.1040
.08 ENTER .40 [X] .12 ENTER .60 [X] [+]
A property has a $450,000 mortgage with annual payments of $52,000. The NOI is
$60,000 and the equity cap rate is .07. What is the total property value, based on
this information?
$564,286
$559,342
$690,804
$572,879 - ANSWER-$564,286
An appraiser may find an older structure's higher energy and maintenance costs
less of a negative factor when:
The buildings are masonry construction
The buildings are frame construction
Retrofitting is an option
There is historical or retro appeal - ANSWER-There is historical or retro appeal
The reporting of the Scope of Work should be included in which part of the
appraisal report?
The transmittal letter
The summary of important facts
The addenda
Any place - ANSWER-Any place
2
,If the sales price of an investment property is $400,000 and the Net Operating
Income is $28,000, what is the indicated rate?
6%
7%
8%
9% - ANSWER-7%
28,000 ENTER 400,000 [÷]
Fees designed to offset the increased burden on infrastructure are what type of
fees?
Police and fire tax
Development
New construction
Impact - ANSWER-Impact
"A yield rate used to convert future payments or receipts into present value"
defines:
Discount rate
Reversion rate
Capitalization rate
Sinking fund - ANSWER-Discount rate
The extra return demanded by investors because the projected cash flow might not
happen is the ______________.
Safe rate
Market rate
Demand rate
3
, Risk premium - ANSWER-Risk premium
In reconstructing an operating statement, what type of expense is one that
accountants use, but appraisers do not?
Depreciation
Pest control
Security
Utilities - ANSWER-Depreciation
When reversion cap rates are used, they should reflect investor expectations
considering which of the following items:
Asset type
Cash flow projections
Age and condition
All of the above should be considered - ANSWER-All of the above should be
considered
The estate that has the right to use an easement is referred to as the:
Owner's estate
Dominant estate
Servient estate
Easement estate - ANSWER-Dominant estate
The dominant estate is the one who actually uses the easement to pass over the
lands of another.
A discount rate is synonymous with the:
Yield rate
4
