Certified Appraisal Exam Review 2024-
2025 with Complete Solutions
.2024-2025
QUESTION RATIONALE
When dealing with a 45 degree angle, the height of the area will equal width. The
difference of the east call (150 feet) and the west call (200 feet) is 50 feet. Therefore,
when viewed as a square the area of the triangular portion is 50' wide x 50' high = 2,500
sq. ft. / 2 = 1,250 sq. ft. Next the area of the rectangular portion of the area must be
found. It is recognized through the first analysis that the distance of the north boundary
call is 50 feet. Thus, the area of the rectangular portion is 50 feet x 150 feet = 7,500 sq.
ft. Add the two areas together to find the total square feet and divide by 43,560
(conversion of square feet to acres). 7,500 + 1,250 = 8,750/43,560 = 0.2009 acres. -
ANSWER-A property is described as commencing at a POB and continuing east 150
feet to a pin, then S 45 degree bearing E 70 feet to a pin, then west 200 feet to a pin,
then north to the POB. What is the total land area in acres?
$14,693.28 correct!
QUESTION RATIONALE
HP 12C method: 10,000 [PV], 8 [i], 5 [n], [FV]. Remember to clear the register after
each problem. f [CLX] - ANSWER-What is the future value of a lot purchased today for
$10,000, if it appreciates at 8% annually for the next five years?
$146,500 correct!
QUESTION RATIONALE
Step 1. Calculate the cost to build the house new;
2,500 x $54 = $135,000
Step 2. Calculate depreciation
5 (Effective Age) / 50 (Total Economic Life) = 1/10, or 10% ;
Step 3. Calculate value of improvements
$135,000 x 90% = $121,500 value of the improvements;
Step 4. Calculate total value
$121,500 + $25,000 (land) = $146,500 indicated value of the property. - ANSWER-A
house with a living area of 2,500 square feet would cost $54 per square foot to
reproduce new. It has a total economic life of 50 years and is estimated to have an
effective age of five years. The lot has a market value of $25,000. What is the indicated
value of the property, using the COST APPROACH?
$171,196
RATIONALE
,The HP 12C keystrokes: 8,500 [PMT], 9 [i], 12 [n], [FV]. - ANSWER-If $8,500 is
deposited each year into an investment account at 9% annual interest, how much will
be in the account at the end of 12 years? (Round your answer to the nearest dollar.)
$34,155 correct!
QUESTION RATIONALE
Gross living area is defined as the outside measurements of the house, excluding the
DETACHED garage: 22.5' x 46' = 1,035 sq. ft. x 33 = $34,155. - ANSWER-A Ranch-
style house with a 320 sq. ft. DETACHED garage and a full basement measures 22.5' x
46'. At a total building cost of $33 per square foot of gross living area, how much would
the house cost to build?
$469
$639
$317 correct!
$552
QUESTION RATIONALE
1. $100,000 x 35% = $35,000 Assessed Value;
2. $35,,000 = 35; 35 x 9.07 = $317.45, rounded down to $317. Mills are per
$1,000 so divide assessed value by 1000 to get 35. Then multiply my 9.07 mills to get
the levy amount - ANSWER-A house that has a market value of $100,000 is assessed
at 35% of market value. The school board has asked the taxpayers for a 9.07 mill levy.
In dollars, how would an appraiser calculate the annual cost of the levy in order to
describe its potential impact in the appraisal? (Round your answer to the nearest dollar.)
$49,452.89 correct!
QUESTION RATIONALE
HP 12C method: 600 [PMT], 8 [g] [i], 10 [g] [n], [PV]. Remember to clear the register
after each problem. f [CLX] - ANSWER-Rounded to the nearest penny, what is the
present value of a triple-net lease that pays $600 per month for the next 10 years if the
targeted yield rate is 8%?
$50,000 / $400,000 = 12.5%. When applied to the subject: $330,000 x 12.5% 8 =
$41,250. - ANSWER-Employ the allocation method to determine the value of a subject
site using information gathered from the subject's market. Subject improved value:
$330,000; Comparable land sale: $50,000; Comparable improved sale: $400,000.
$555.71
QUESTION RATIONALE
HP 12C method: 80,000 [ENTER], 0.90 [X] (or 90 [%]) = 72,000, [CHS] [PV], 8 [g] [i], 25
[g] [n], [PMT]. Remember to clear the register after each problem. f [CLX] - ANSWER-
What is the monthly payment for a 25-year loan at 8% if the sale price is $80,000 and
the loan-to-value ratio is 90%?
$77,192.56 correct!
QUESTION RATIONALE
,The modified age-life method considers the known cost to cure of curable items and an
effective age as if the items were cured.
Step 1. First, depreciation is calculated: 20 (Effective Age) / 60 (Total Economic Life: 40
+ 20) = 33.33%.
Step 2. Next, curable depreciation is subtracted from cost: $226,000 - $2,800 =
$223,200.
Step 3. Total depreciation is calculated as follows: $223,200 x 33.33% = $74,392.56
(incurable) + 2,800.00 (curable) = $77,192.56. - ANSWER-
$8,756
RATIONALE
HP-12C Keystrokes: [f] [Sigma] [150000] [Sigma+] [165000] [Sigma+] [148000]
[Sigma+] [156000] [Sigma+] [163000] [Sigma+] [170000] [Sigma+] [g] [s] gives you a
result of $8,756. - ANSWER-Six homes sold within the past few months. What is the
standard deviation among the data provided? $150,000, $165,000, $148,000, $156,000,
$163,000, $170,000
$95,100 correct!
QUESTION RATIONALE
This is a 2-step problem, so the order you enter the data is very important. HP 12C
method: 100,000 [CHS] [PV], 8 [g] [i], 30 [g] [n], [PMT], [ENTER], 60 [n], [FV]. After you
hit [PMT] button you should have 733.76. Final answer is $95,069.86, which rounds to
$95,1000.00. Remember to clear the register after each problem. f [CLX] - ANSWER-
Rounded to the nearest hundred dollars, what is the balance of a $100,000 loan for 30
years at 8% annual interest after five years of monthly payments?
0
Land does not depreciate. - ANSWER-The subject property is a new house that
contains 3,100 sq. ft. of livable area, located on 1.5 acres, with a three-car garage with
625 sq. ft., and a granite swimming pool with 75 perimeter feet. The costs are estimated
to be as follows: $75 per sq. ft. for the house, $19.25 per sq. ft. for the garage,
inidicated land value is $0.25 per sq. ft., and the swimming pool is estimated to cost
$260 per perimeter foot. The cost multiplier is considered to be 0.9876 for the area and
time of appraisal. What is the depreciated value of the land?
0.8487
RATIONALE
The parcel must be recognized as having two distinct areas. The east section is 37' x
163', and the west section is 165' x 187.5' (163' + 24.5'). 37' x 163' = 6,031 square feet;
165' x 187.5' = 30,937.5 square feet. 6,031 + 30,937.5 = 36,968.5 square feet / 43,560
= 0.8487 acre. - ANSWER-A property is described as commencing at a POB located in
the center of the road and continuing east 202 feet to a pin, then south 163 feet to a pin,
then west 37 feet to a pin, then south 24.5 feet to a pin, then west 165 feet to a pin, then
north to the POB. What is the site area in acres?
1,000
, QUESTION RATIONALE
To calculate cubic yards, divide the cubic feet by a cubic yard: 3 x 3 x 3 = 27. Cubic feet
is calculated by multiplying the Width x Depth x Height then dividing by 27: 100 x 30 x 9
= 27, = 1,000. - ANSWER-How many cubic yards are in a building that
measures 100 x 30 x 9 ft.?
1. 1600 x 62/sf = 99,200 = Cost New
2. 15/45 = 25% = Depreciation %
3. 25% x 99,200 = 24,800 = Depreciation Amt.
4. 99,200 - 24,800 = 74,400 = Depreciated Value - ANSWER-What is the depreciated
value of this structure? Dwelling size: 1,600 sq. ft.; Replacement cost: $62.00 per sq. ft.;
Effective age: 15 years; Remaining economic life: 45 years.
1. Calculate depreciation % (Effective age/total economic life)
2. Subtract curable depreciation from cost new of structure
3. Calculate total depreciation by:
A. Calculate incurable depreciation
B. Adding curable and incurable depreciation together - ANSWER-What is the formula
for calculating depreciation with the modified age life method?
1. Calculate PGI = 4700 + 1200 = 5900 x 12 months = 70,800
2. Calculate PGIM = Price/PGI = 337,500/70,800 = 5.0494
RATIONALE
PGIM uses potential gross income (PGI). Monthly income is $5,900 ($4,700 + $1,200).
Therefore, the PGI is $70,800 (12 x $5,900). The PGIM is calculated by dividing the
sale price by PGI. Disregard vacancy and expenses as PGI doesn't consider them:
$357,500 / $70,800 = 5.0494 PGIM. - ANSWER-A property generates rent from units
totaling $4,700 per month and $1,200 per month in revenue from a storage building at
the rear of the property. What is the indicated PGIM if the property recently sold for
$357,500 and has a vacancy rate of 3.298% with expenses of $10,671 annually?
1. Loss in rents = 50 x 4 units = 200
2. 200 x 125 (GRM) = 25,000 = total loss per month
3. 25,000 - 16,000 = 9,000
RATIONALE
An income method for calculating the loss in value to a property as a component of the
analysis of a deficiency uses a GRM times the monthly loss realized due to the
deficiency. Each unit rents for $50 less per month. Therefore, the total loss per month
due to the deficiency is $200 (4 x $50): $200 x 125 (GRM) = $25,000 - $16,000 cost if
installed when new = $9,000 depreciation. - ANSWER-A four-unit apartment building in
a warm climate area has no central air-conditioning. Several industry professionals
agree that due to the age and design of the property, installing central air-conditioning
would be physically prohibitive, and thus the condition is incurable. Estimates reveal
that if the central air-conditioning was added along with the construction of the building,
the cost if installed new would be $16,000. Market data supports that each unit rents for
$50 per month less than comparable units that have central air-conditioning. The
2025 with Complete Solutions
.2024-2025
QUESTION RATIONALE
When dealing with a 45 degree angle, the height of the area will equal width. The
difference of the east call (150 feet) and the west call (200 feet) is 50 feet. Therefore,
when viewed as a square the area of the triangular portion is 50' wide x 50' high = 2,500
sq. ft. / 2 = 1,250 sq. ft. Next the area of the rectangular portion of the area must be
found. It is recognized through the first analysis that the distance of the north boundary
call is 50 feet. Thus, the area of the rectangular portion is 50 feet x 150 feet = 7,500 sq.
ft. Add the two areas together to find the total square feet and divide by 43,560
(conversion of square feet to acres). 7,500 + 1,250 = 8,750/43,560 = 0.2009 acres. -
ANSWER-A property is described as commencing at a POB and continuing east 150
feet to a pin, then S 45 degree bearing E 70 feet to a pin, then west 200 feet to a pin,
then north to the POB. What is the total land area in acres?
$14,693.28 correct!
QUESTION RATIONALE
HP 12C method: 10,000 [PV], 8 [i], 5 [n], [FV]. Remember to clear the register after
each problem. f [CLX] - ANSWER-What is the future value of a lot purchased today for
$10,000, if it appreciates at 8% annually for the next five years?
$146,500 correct!
QUESTION RATIONALE
Step 1. Calculate the cost to build the house new;
2,500 x $54 = $135,000
Step 2. Calculate depreciation
5 (Effective Age) / 50 (Total Economic Life) = 1/10, or 10% ;
Step 3. Calculate value of improvements
$135,000 x 90% = $121,500 value of the improvements;
Step 4. Calculate total value
$121,500 + $25,000 (land) = $146,500 indicated value of the property. - ANSWER-A
house with a living area of 2,500 square feet would cost $54 per square foot to
reproduce new. It has a total economic life of 50 years and is estimated to have an
effective age of five years. The lot has a market value of $25,000. What is the indicated
value of the property, using the COST APPROACH?
$171,196
RATIONALE
,The HP 12C keystrokes: 8,500 [PMT], 9 [i], 12 [n], [FV]. - ANSWER-If $8,500 is
deposited each year into an investment account at 9% annual interest, how much will
be in the account at the end of 12 years? (Round your answer to the nearest dollar.)
$34,155 correct!
QUESTION RATIONALE
Gross living area is defined as the outside measurements of the house, excluding the
DETACHED garage: 22.5' x 46' = 1,035 sq. ft. x 33 = $34,155. - ANSWER-A Ranch-
style house with a 320 sq. ft. DETACHED garage and a full basement measures 22.5' x
46'. At a total building cost of $33 per square foot of gross living area, how much would
the house cost to build?
$469
$639
$317 correct!
$552
QUESTION RATIONALE
1. $100,000 x 35% = $35,000 Assessed Value;
2. $35,,000 = 35; 35 x 9.07 = $317.45, rounded down to $317. Mills are per
$1,000 so divide assessed value by 1000 to get 35. Then multiply my 9.07 mills to get
the levy amount - ANSWER-A house that has a market value of $100,000 is assessed
at 35% of market value. The school board has asked the taxpayers for a 9.07 mill levy.
In dollars, how would an appraiser calculate the annual cost of the levy in order to
describe its potential impact in the appraisal? (Round your answer to the nearest dollar.)
$49,452.89 correct!
QUESTION RATIONALE
HP 12C method: 600 [PMT], 8 [g] [i], 10 [g] [n], [PV]. Remember to clear the register
after each problem. f [CLX] - ANSWER-Rounded to the nearest penny, what is the
present value of a triple-net lease that pays $600 per month for the next 10 years if the
targeted yield rate is 8%?
$50,000 / $400,000 = 12.5%. When applied to the subject: $330,000 x 12.5% 8 =
$41,250. - ANSWER-Employ the allocation method to determine the value of a subject
site using information gathered from the subject's market. Subject improved value:
$330,000; Comparable land sale: $50,000; Comparable improved sale: $400,000.
$555.71
QUESTION RATIONALE
HP 12C method: 80,000 [ENTER], 0.90 [X] (or 90 [%]) = 72,000, [CHS] [PV], 8 [g] [i], 25
[g] [n], [PMT]. Remember to clear the register after each problem. f [CLX] - ANSWER-
What is the monthly payment for a 25-year loan at 8% if the sale price is $80,000 and
the loan-to-value ratio is 90%?
$77,192.56 correct!
QUESTION RATIONALE
,The modified age-life method considers the known cost to cure of curable items and an
effective age as if the items were cured.
Step 1. First, depreciation is calculated: 20 (Effective Age) / 60 (Total Economic Life: 40
+ 20) = 33.33%.
Step 2. Next, curable depreciation is subtracted from cost: $226,000 - $2,800 =
$223,200.
Step 3. Total depreciation is calculated as follows: $223,200 x 33.33% = $74,392.56
(incurable) + 2,800.00 (curable) = $77,192.56. - ANSWER-
$8,756
RATIONALE
HP-12C Keystrokes: [f] [Sigma] [150000] [Sigma+] [165000] [Sigma+] [148000]
[Sigma+] [156000] [Sigma+] [163000] [Sigma+] [170000] [Sigma+] [g] [s] gives you a
result of $8,756. - ANSWER-Six homes sold within the past few months. What is the
standard deviation among the data provided? $150,000, $165,000, $148,000, $156,000,
$163,000, $170,000
$95,100 correct!
QUESTION RATIONALE
This is a 2-step problem, so the order you enter the data is very important. HP 12C
method: 100,000 [CHS] [PV], 8 [g] [i], 30 [g] [n], [PMT], [ENTER], 60 [n], [FV]. After you
hit [PMT] button you should have 733.76. Final answer is $95,069.86, which rounds to
$95,1000.00. Remember to clear the register after each problem. f [CLX] - ANSWER-
Rounded to the nearest hundred dollars, what is the balance of a $100,000 loan for 30
years at 8% annual interest after five years of monthly payments?
0
Land does not depreciate. - ANSWER-The subject property is a new house that
contains 3,100 sq. ft. of livable area, located on 1.5 acres, with a three-car garage with
625 sq. ft., and a granite swimming pool with 75 perimeter feet. The costs are estimated
to be as follows: $75 per sq. ft. for the house, $19.25 per sq. ft. for the garage,
inidicated land value is $0.25 per sq. ft., and the swimming pool is estimated to cost
$260 per perimeter foot. The cost multiplier is considered to be 0.9876 for the area and
time of appraisal. What is the depreciated value of the land?
0.8487
RATIONALE
The parcel must be recognized as having two distinct areas. The east section is 37' x
163', and the west section is 165' x 187.5' (163' + 24.5'). 37' x 163' = 6,031 square feet;
165' x 187.5' = 30,937.5 square feet. 6,031 + 30,937.5 = 36,968.5 square feet / 43,560
= 0.8487 acre. - ANSWER-A property is described as commencing at a POB located in
the center of the road and continuing east 202 feet to a pin, then south 163 feet to a pin,
then west 37 feet to a pin, then south 24.5 feet to a pin, then west 165 feet to a pin, then
north to the POB. What is the site area in acres?
1,000
, QUESTION RATIONALE
To calculate cubic yards, divide the cubic feet by a cubic yard: 3 x 3 x 3 = 27. Cubic feet
is calculated by multiplying the Width x Depth x Height then dividing by 27: 100 x 30 x 9
= 27, = 1,000. - ANSWER-How many cubic yards are in a building that
measures 100 x 30 x 9 ft.?
1. 1600 x 62/sf = 99,200 = Cost New
2. 15/45 = 25% = Depreciation %
3. 25% x 99,200 = 24,800 = Depreciation Amt.
4. 99,200 - 24,800 = 74,400 = Depreciated Value - ANSWER-What is the depreciated
value of this structure? Dwelling size: 1,600 sq. ft.; Replacement cost: $62.00 per sq. ft.;
Effective age: 15 years; Remaining economic life: 45 years.
1. Calculate depreciation % (Effective age/total economic life)
2. Subtract curable depreciation from cost new of structure
3. Calculate total depreciation by:
A. Calculate incurable depreciation
B. Adding curable and incurable depreciation together - ANSWER-What is the formula
for calculating depreciation with the modified age life method?
1. Calculate PGI = 4700 + 1200 = 5900 x 12 months = 70,800
2. Calculate PGIM = Price/PGI = 337,500/70,800 = 5.0494
RATIONALE
PGIM uses potential gross income (PGI). Monthly income is $5,900 ($4,700 + $1,200).
Therefore, the PGI is $70,800 (12 x $5,900). The PGIM is calculated by dividing the
sale price by PGI. Disregard vacancy and expenses as PGI doesn't consider them:
$357,500 / $70,800 = 5.0494 PGIM. - ANSWER-A property generates rent from units
totaling $4,700 per month and $1,200 per month in revenue from a storage building at
the rear of the property. What is the indicated PGIM if the property recently sold for
$357,500 and has a vacancy rate of 3.298% with expenses of $10,671 annually?
1. Loss in rents = 50 x 4 units = 200
2. 200 x 125 (GRM) = 25,000 = total loss per month
3. 25,000 - 16,000 = 9,000
RATIONALE
An income method for calculating the loss in value to a property as a component of the
analysis of a deficiency uses a GRM times the monthly loss realized due to the
deficiency. Each unit rents for $50 less per month. Therefore, the total loss per month
due to the deficiency is $200 (4 x $50): $200 x 125 (GRM) = $25,000 - $16,000 cost if
installed when new = $9,000 depreciation. - ANSWER-A four-unit apartment building in
a warm climate area has no central air-conditioning. Several industry professionals
agree that due to the age and design of the property, installing central air-conditioning
would be physically prohibitive, and thus the condition is incurable. Estimates reveal
that if the central air-conditioning was added along with the construction of the building,
the cost if installed new would be $16,000. Market data supports that each unit rents for
$50 per month less than comparable units that have central air-conditioning. The
