1|Page
Ohio Certified General Appraiser Newest Exam
Preparation With Complete Questions And Correct
Answers With Rationales Already Graded A+Brand
New Version!!
Question 1
The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Answer: B
Rationale: Utility refers to the ability of a property to satisfy a human
need, which is a fundamental characteristic of value. While scarcity and
transferability are also factors, utility is the essential characteristic that
creates value. Without utility, a property has no value regardless of its
cost or scarcity.
Question 2
,2|Page
What four interdependent economic factors create value?
A) Amenities, assemblage, scarcity, and effective purchasing power
B) Utility, scarcity, desire, and effective purchasing power
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and plotage
Answer: B
Rationale: The four interdependent economic factors that create value
are utility (ability to satisfy a need), scarcity (limited supply), desire
(willingness to acquire), and effective purchasing power (ability to pay).
These must all be present simultaneously for value to exist.
Question 3
The principle of substitution states that:
A) A buyer will pay more for a property than for a comparable
substitute
B) A buyer will pay no more for a property than the cost of acquiring a
similar substitute
C) Property values increase when substitutes are available
D) The cost of a substitute property is irrelevant to value
Answer: B
Rationale: The principle of substitution holds that a prudent buyer will
pay no more for a property than the cost of acquiring a similar
,3|Page
substitute property with the same utility. This is the foundation of the
Sales Comparison Approach and caps value at the cost of equivalent
alternatives.
Question 4
The principle of change indicates that:
A) Values are fixed and unchanging
B) Property values are affected by economic and social trends
C) Land always appreciates in value
D) Supply is constant over time
Answer: B
Rationale: The principle of change recognizes that market conditions,
demographics, and economic factors continuously impact property
value. Appraisers must analyze current market conditions and trends
rather than assuming static values.
Question 5
The primary purpose of an appraisal is to:
A) Estimate the value of a property as of a specific date
B) Guarantee a future selling price
C) Establish property taxes
D) Determine building code compliance
, 4|Page
Answer: A
Rationale: An appraisal is an opinion of value developed through
recognized appraisal methods as of a specific effective date. It does not
guarantee future prices, nor does it establish tax assessments or
determine code compliance, which are separate governmental
functions.
Question 6
Market value is best defined as:
A) The most probable price a property should bring in a competitive
and open market
B) The highest price ever paid for a property
C) The price set by the local tax assessor
D) The replacement cost minus depreciation
Answer: A
Rationale: Market value is the most probable price, not the highest or
lowest, that a property would bring in an arm's-length transaction
under competitive market conditions. Tax assessed values and
depreciated replacement cost are distinct concepts.
Question 7
Which principle suggests that the value of a property is affected by its
highest and best use?
Ohio Certified General Appraiser Newest Exam
Preparation With Complete Questions And Correct
Answers With Rationales Already Graded A+Brand
New Version!!
Question 1
The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Answer: B
Rationale: Utility refers to the ability of a property to satisfy a human
need, which is a fundamental characteristic of value. While scarcity and
transferability are also factors, utility is the essential characteristic that
creates value. Without utility, a property has no value regardless of its
cost or scarcity.
Question 2
,2|Page
What four interdependent economic factors create value?
A) Amenities, assemblage, scarcity, and effective purchasing power
B) Utility, scarcity, desire, and effective purchasing power
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and plotage
Answer: B
Rationale: The four interdependent economic factors that create value
are utility (ability to satisfy a need), scarcity (limited supply), desire
(willingness to acquire), and effective purchasing power (ability to pay).
These must all be present simultaneously for value to exist.
Question 3
The principle of substitution states that:
A) A buyer will pay more for a property than for a comparable
substitute
B) A buyer will pay no more for a property than the cost of acquiring a
similar substitute
C) Property values increase when substitutes are available
D) The cost of a substitute property is irrelevant to value
Answer: B
Rationale: The principle of substitution holds that a prudent buyer will
pay no more for a property than the cost of acquiring a similar
,3|Page
substitute property with the same utility. This is the foundation of the
Sales Comparison Approach and caps value at the cost of equivalent
alternatives.
Question 4
The principle of change indicates that:
A) Values are fixed and unchanging
B) Property values are affected by economic and social trends
C) Land always appreciates in value
D) Supply is constant over time
Answer: B
Rationale: The principle of change recognizes that market conditions,
demographics, and economic factors continuously impact property
value. Appraisers must analyze current market conditions and trends
rather than assuming static values.
Question 5
The primary purpose of an appraisal is to:
A) Estimate the value of a property as of a specific date
B) Guarantee a future selling price
C) Establish property taxes
D) Determine building code compliance
, 4|Page
Answer: A
Rationale: An appraisal is an opinion of value developed through
recognized appraisal methods as of a specific effective date. It does not
guarantee future prices, nor does it establish tax assessments or
determine code compliance, which are separate governmental
functions.
Question 6
Market value is best defined as:
A) The most probable price a property should bring in a competitive
and open market
B) The highest price ever paid for a property
C) The price set by the local tax assessor
D) The replacement cost minus depreciation
Answer: A
Rationale: Market value is the most probable price, not the highest or
lowest, that a property would bring in an arm's-length transaction
under competitive market conditions. Tax assessed values and
depreciated replacement cost are distinct concepts.
Question 7
Which principle suggests that the value of a property is affected by its
highest and best use?
