Certified General Appraiser Latest Exam
Prep Test Bank 1 with 610 Questions and
Correct Verified Answers with
Rationales/ Newest Prep Test Bank for
Certified General Appraiser Exam
Section 1: Real Property Concepts & Characteristics
(Questions 1-100)
1. An appraiser is valuing a 40-acre tract of land. The front 25 acres have road
frontage and are zoned commercial. The rear 15 acres are landlocked and zoned
agricultural. Which economic concept BEST describes the difference in value
between the front and rear parcels?
• A) Balance
• B) Conformity
• C) Anticipation
• D) Situs
• Rationale: Situs refers to the location-specific advantages of a property. The
front parcel's higher value is due to its superior location (road frontage and
commercial zoning), which is the essence of situs. Anticipation is about future
benefits; while related, the primary driver here is the physical and legal location
advantage.
2. The value of a new shopping center is significantly reduced because a
competing center is being built two miles away. This is an example of which
principle?
• A) Contribution
• B) Competition
• C) Substitution
• D) Change
, • Rationale: The Principle of Competition states that excess profits attract
competition, which can reduce the value of an existing property. The new center
competing for the same customer base negatively impacts the subject's value.
3. An office building with 20-foot ceilings has a higher value than an identical
building with 10-foot ceilings. The additional height allows for mezzanine levels.
This is an example of:
• A) Plottage
• B) Utility
• C) Scarcity
• D) Transferability
• Rationale: Utility is the ability of a property to satisfy a human need or want. The
higher ceilings provide functional utility by allowing for more rentable space
(mezzanines), thus increasing the property's usefulness and value.
4. A developer assembles four adjacent lots into one larger parcel. The combined
value is greater than the sum of the individual lot values. This is due to:
• A) Plottage
• B) Surplus Productivity
• C) Balance
• D) Regression
• Rationale: Plottage (or assemblage) is the increment in value created by
combining two or more adjacent properties into one larger ownership. This often
allows for more profitable development.
5. An appraiser is analyzing the highest and best use of a property. Which of the
following is NOT a test of highest and best use?
• A) Physically possible
• B) Legally permissible
• C) Emotionally satisfying
• D) Maximally productive
• Rationale: The four tests of highest and best use are: Physically Possible, Legally
Permissible, Financially Feasible, and Maximally Productive. "Emotionally
satisfying" is a subjective concept not used in this analysis.
6. A property is located in a neighborhood where all the homes are similar in size,
age, and style. This is an example of:
• A) Conformity
, • B) Progression
• C) Regression
• D) Increasing returns
• Rationale: The Principle of Conformity states that maximum value is achieved
when there is a reasonable degree of homogeneity in a neighborhood. This
conformity minimizes the negative impacts of non-conforming uses.
7. A small, well-maintained home in a neighborhood of large, expensive homes is
worth more than it would be in a neighborhood of similar small homes. This is due
to:
• A) Progression
• B) Regression
• C) Contribution
• D) Balance
• Rationale: Progression is the principle that a lesser property's value is increased
by its association with superior properties in the same neighborhood.
8. A large, dated home in a neighborhood of small, modern homes is worth less
than it would be in a neighborhood of similar large homes. This is due to:
• A) Progression
• B) Regression
• C) Contribution
• D) Substitution
• Rationale: Regression is the opposite of progression. A superior property's value
is negatively impacted by its association with inferior properties.
9. An investor pays $2,000,000 for an apartment building. The land is valued at
$500,000 and the building's depreciated cost is $1,200,000. The $300,000
difference is most likely attributable to:
• A) Physical depreciation
• B) Functional obsolescence
• C) Entrepreneurial profit
• D) External obsolescence
• Rationale: In the cost approach, the difference between the total cost (land +
building) and the sale price often represents entrepreneurial profit (or loss). This
is the return to the developer for their risk and effort.
10. Which of the following is considered a form of external obsolescence?
, • A) Poor design of the building's floor plan
• B) Zoning changes that restrict the property's use
• C) Outdated mechanical systems
• D) Deferred maintenance
• Rationale: External obsolescence is a loss in value caused by factors outside the
property, such as changes in zoning, construction of a nearby undesirable facility,
or economic downturns. A poor floor plan and outdated systems are functional
obsolescence, and deferred maintenance is physical deterioration.
11. An office building has an unusually low floor-to-ceiling height, making it
difficult to lease to modern tenants. This is an example of:
• A) Functional obsolescence (curable)
• B) Functional obsolescence (incurable)
• C) External obsolescence
• D) Physical deterioration
• Rationale: It is functional obsolescence because it is a deficiency within the
property. It is likely curable because the ceilings could be raised or a new ceiling
system installed, provided the cost is less than the value added.
12. A property has a 30-year-old roof that is leaking. The cost to repair the roof is
$10,000. This is an example of:
• A) Physical deterioration (curable)
• B) Physical deterioration (incurable)
• C) Functional obsolescence
• D) Economic obsolescence
• Rationale: A leaking roof is physical deterioration. It is curable because it's a
typical maintenance item that can be fixed, and the cost to cure is less than the
value added.
13. A 40-year-old building has an effective age of 15 years. This indicates that:
• A) The building is physically older than it appears.
• B) The building is physically newer than its actual age suggests.
• C) The building is functionally obsolete.
• D) The building is located in a declining neighborhood.
• Rationale: Effective age is the age indicated by the condition and utility of the
property. An effective age less than the actual age means the property has been
well-maintained and/or updated, making it appear newer.
14. The value of a property is the present worth of:
Prep Test Bank 1 with 610 Questions and
Correct Verified Answers with
Rationales/ Newest Prep Test Bank for
Certified General Appraiser Exam
Section 1: Real Property Concepts & Characteristics
(Questions 1-100)
1. An appraiser is valuing a 40-acre tract of land. The front 25 acres have road
frontage and are zoned commercial. The rear 15 acres are landlocked and zoned
agricultural. Which economic concept BEST describes the difference in value
between the front and rear parcels?
• A) Balance
• B) Conformity
• C) Anticipation
• D) Situs
• Rationale: Situs refers to the location-specific advantages of a property. The
front parcel's higher value is due to its superior location (road frontage and
commercial zoning), which is the essence of situs. Anticipation is about future
benefits; while related, the primary driver here is the physical and legal location
advantage.
2. The value of a new shopping center is significantly reduced because a
competing center is being built two miles away. This is an example of which
principle?
• A) Contribution
• B) Competition
• C) Substitution
• D) Change
, • Rationale: The Principle of Competition states that excess profits attract
competition, which can reduce the value of an existing property. The new center
competing for the same customer base negatively impacts the subject's value.
3. An office building with 20-foot ceilings has a higher value than an identical
building with 10-foot ceilings. The additional height allows for mezzanine levels.
This is an example of:
• A) Plottage
• B) Utility
• C) Scarcity
• D) Transferability
• Rationale: Utility is the ability of a property to satisfy a human need or want. The
higher ceilings provide functional utility by allowing for more rentable space
(mezzanines), thus increasing the property's usefulness and value.
4. A developer assembles four adjacent lots into one larger parcel. The combined
value is greater than the sum of the individual lot values. This is due to:
• A) Plottage
• B) Surplus Productivity
• C) Balance
• D) Regression
• Rationale: Plottage (or assemblage) is the increment in value created by
combining two or more adjacent properties into one larger ownership. This often
allows for more profitable development.
5. An appraiser is analyzing the highest and best use of a property. Which of the
following is NOT a test of highest and best use?
• A) Physically possible
• B) Legally permissible
• C) Emotionally satisfying
• D) Maximally productive
• Rationale: The four tests of highest and best use are: Physically Possible, Legally
Permissible, Financially Feasible, and Maximally Productive. "Emotionally
satisfying" is a subjective concept not used in this analysis.
6. A property is located in a neighborhood where all the homes are similar in size,
age, and style. This is an example of:
• A) Conformity
, • B) Progression
• C) Regression
• D) Increasing returns
• Rationale: The Principle of Conformity states that maximum value is achieved
when there is a reasonable degree of homogeneity in a neighborhood. This
conformity minimizes the negative impacts of non-conforming uses.
7. A small, well-maintained home in a neighborhood of large, expensive homes is
worth more than it would be in a neighborhood of similar small homes. This is due
to:
• A) Progression
• B) Regression
• C) Contribution
• D) Balance
• Rationale: Progression is the principle that a lesser property's value is increased
by its association with superior properties in the same neighborhood.
8. A large, dated home in a neighborhood of small, modern homes is worth less
than it would be in a neighborhood of similar large homes. This is due to:
• A) Progression
• B) Regression
• C) Contribution
• D) Substitution
• Rationale: Regression is the opposite of progression. A superior property's value
is negatively impacted by its association with inferior properties.
9. An investor pays $2,000,000 for an apartment building. The land is valued at
$500,000 and the building's depreciated cost is $1,200,000. The $300,000
difference is most likely attributable to:
• A) Physical depreciation
• B) Functional obsolescence
• C) Entrepreneurial profit
• D) External obsolescence
• Rationale: In the cost approach, the difference between the total cost (land +
building) and the sale price often represents entrepreneurial profit (or loss). This
is the return to the developer for their risk and effort.
10. Which of the following is considered a form of external obsolescence?
, • A) Poor design of the building's floor plan
• B) Zoning changes that restrict the property's use
• C) Outdated mechanical systems
• D) Deferred maintenance
• Rationale: External obsolescence is a loss in value caused by factors outside the
property, such as changes in zoning, construction of a nearby undesirable facility,
or economic downturns. A poor floor plan and outdated systems are functional
obsolescence, and deferred maintenance is physical deterioration.
11. An office building has an unusually low floor-to-ceiling height, making it
difficult to lease to modern tenants. This is an example of:
• A) Functional obsolescence (curable)
• B) Functional obsolescence (incurable)
• C) External obsolescence
• D) Physical deterioration
• Rationale: It is functional obsolescence because it is a deficiency within the
property. It is likely curable because the ceilings could be raised or a new ceiling
system installed, provided the cost is less than the value added.
12. A property has a 30-year-old roof that is leaking. The cost to repair the roof is
$10,000. This is an example of:
• A) Physical deterioration (curable)
• B) Physical deterioration (incurable)
• C) Functional obsolescence
• D) Economic obsolescence
• Rationale: A leaking roof is physical deterioration. It is curable because it's a
typical maintenance item that can be fixed, and the cost to cure is less than the
value added.
13. A 40-year-old building has an effective age of 15 years. This indicates that:
• A) The building is physically older than it appears.
• B) The building is physically newer than its actual age suggests.
• C) The building is functionally obsolete.
• D) The building is located in a declining neighborhood.
• Rationale: Effective age is the age indicated by the condition and utility of the
property. An effective age less than the actual age means the property has been
well-maintained and/or updated, making it appear newer.
14. The value of a property is the present worth of:
