Certified Appraisal Exam
Review
2026
Master Exam Prep Bundle
(Verified Questions & Answers)
A+ Grade Guaranteed
,Steps. For the purpose of estimating depreciation via the extraction method, you have
1. Determine Cost New utilized Comparable Sale #1, which is a 2,400 sq. ft. home with a two-car, 440 sq. ft.
Main house 2400 SF x 85/SF =204,000 attached garage, having a replacement cost of $85/sq. ft. for gross living area and
Garage 440 x 18/SF = 7920 $18/sq. ft. for the garage area. This property sold for $240,000 and has a
====================================== chronological age of 10 years. Through your research, the indicated land value is
204,000 + 92 = 211,920 $50,000 and the site improvements have a replacement cost of $25,000. What is
the percentage total amount of accrued depreciation indicated by this sale?
2. Determine Depreciation Cost
Sale Price 240,000 -
Land Value 50,000 -
Improvements 25,000
========================
165,000
3. Determine Total Depreciation
Cost New 211,920 - Depreciation Cost 165,000 = 46,920
4. Determine Depreciation Percentage
Cost New 211,920/Total Depreciation 46,920 = 22.14%
Allocation: a method of estimating land value in which Allocation method vs. extraction method
sales of improved properties are analyzed to establish a
typical ratio of site value to total property value and this
ratio is applied to the property being appraised or the
comparable being analyzed.
Extraction: a method of estimating land value in which the
depreciated cost of the improvement on the improved
property is estimated and deducted from the total sale
price to arrive at an estimated sale price for the land; most
effective when the improvements contribute little to the
total sale price of the property.
size Which is a physical force in relationship to value?
utilize the site as one home site, since the site cannot What is the highest and best use of a rural property that has 300 lineal feet of
legally be split frontage and a depth of 300 lineal feet, when zoning requires a site to be at least
two acres for the development of a single-family home?
effective demand. Regardless of the desire for a property in a particular market, if there is not general
RATIONALE The characteristic of purchase ability, or purchase ability linked to the desire within the market, the market is lacking
affordability, is known as effective demand or effective
purchasing power.
scarcity and utility. DUST Which of the following characteristics create value in real estate?
it could remain in that phase indefinitely. Once a neighborhood has reached the phase of stability in its life cycle
RATIONALE
Stability is when buyer interest in the neighborhood
remains strong and prices rarely drop. Some
neighborhoods remain in this stage and don't experience
decline.
If the condition is not adhered to, the title to the property Legal interest of a subject property was conveyed to the current owner as fee
could be forfeited simple conditional. What can be best said about the estate held by the current
RATIONALE owner?
Fee simple conditional provides that the owner may hold
the estate only as long as some specified act or condition
does or does not occur. Thus, if the condition is not
observed, the owner could forfeit title.
2026
,Life estate with a reversionary interest When an individual has a freehold estate that only lasts as long as a specified
RATIONALE person lives and then the interest goes back to the grantor or the grantor's heirs,
A life estate is a freehold estate that lasts only as long as a what type of freehold estate does the individual have?
specified person lives. A life estate with a reversionary
interest means that the property will go back (revert) to the
grantor or the grantor's heirs.
increases at a decreasing rate. As the depth of the lot increases, the value per front footage
RATIONALE
With a fixed frontage, as the depth of the lot increases, the
overall value of the lot increases. However, as the lot
extends back, the value of the land farther back becomes
less and the increase in overall value becomes smaller.
Therefore, the front foot rate will increase, but as the lot
extends farther back, the amount of increase in rate will
decrease.
takes a ratio of the land or site value to the total improved The allocation method for determining site value
value.
RATIONALE
When the ratio of land to total value is calculated for the
comparable sales and then applied to the subject, the
allocation method is being used.
$8,756 Six homes sold within the past few months. What is the standard deviation among
RATIONALE the data provided? $150,000, $165,000, $148,000, $156,000, $163,000, $170,000
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.
12.30 Using this number set, find the standard deviation: 47 - 14 - 37 - 29 - 37, rounded to
RATIONALE two places.
HP 12C method: 47 [Sigma+], 14 [Sigma+], 37 [Sigma+],
29 [Sigma+], 37 [Sigma+], [g] [s] = 12.2963, or 12.30
rounded. Be sure to clear all registers before beginning
entries. The[s]key is the decimal key ('s' in blue on front of
key).
22.14% For the purpose of estimating depreciation via the extraction method, you have
RATIONAL: utilized Comparable Sale #1, which is a 2,400 sq. ft. home with a two-car, 440 sq. ft.
1. Cost new = (2,400 sq. ft. x $85) + (440 sq. ft. x $18) = attached garage, having a replacement cost of $85/sq. ft. for gross living area and
$211,920. $18/sq. ft. for the garage area. This property sold for $240,000 and has a
chronological age of 10 years. Through your research, the indicated land value is
2. Depreciation Cost = $50,000 and the site improvements have a replacement cost of $25,000. What is
Sale Price $240,000 - the percentage total amount of accrued depreciation indicated by this sale?
Land Value $50,000 -
Site Improve $25,000 = $165,000
.
3. Total Depreciation = $46,920 ($211,920 - $165,000).
4. Percentage of Depreciation Depreciation / Cost new
(46,,920 = 0.2214 or 22.14%).
52% An appraiser must determine the cost of carpet in a residential dwelling. The areas
RATIONALE \First, determine the square footage of the needing carpet measure 12' x 14', 15.5' x 17.25', and 12.3' x 17.5'. If the carpet
three areas needing carpet: 12 x 14 = 168 sq. ft., 15.5 x must be purchased in full square yards and will cost $14.50 per square yard, and
17.25 = 267.375 sq. ft., and 12.3 x 17.5 = 215.25 sq. ft. the installation is $1.50 per square foot, what percent of the total cost is for the
Next, add the three areas together: 168 + 267.375 + carpet?
215.25 = 650.625 sq. ft. To convert square yards to square
feet, divide by 9: 650. = 72.291666, or 73 full
square yards. Now, determine the cost of the carpet: 73
square yards x $14.50 = $1,058.50. The next step is to
determine the installation cost: 650.625 sq. ft. x $1.50 =
$975.94. Thus, the total cost for carpet and installation
would be $2,034.44 ($1,058.50 + $975.94). $1,058.50
(cost of carpet) / $2,034.44 (total cost) = 0.52, or 52%.
ID: 10027
2026
, RATIONALE A concrete patio measures 20' x 26'. The concrete slab is four inches thick. If
1. First, calculate the cubic feet of the concrete patio: 20 concrete costs $37.85 per cubic yard, what would be the cost of the concrete?
(Length) x 26 (Width) x 0.3333 (Depth, four inches is 1/3 of (Round to nearest dollar.)
a foot) = 173.316 Cubic Feet.
2. Convert cubic feet to cubic yards by dividing by 27:
173.316 cubic feet / 27 = 6.4191 Cubic Yards. 3. Now,
determine the cost of concrete needed: 6.4191 Cubic
Yards x $37.85 = $242.96, or rounded $243.
$171,196 If $8,500 is deposited each year into an investment account at 9% annual interest,
RATIONALE how much will be in the account at the end of 12 years? (Round your answer to the
The HP 12C keystrokes: 8,500 [PMT], 9 [i], 12 [n], [FV]. nearest dollar.)
52.7833 A client's building will need a new roof in 15 years. The estimated cost at that time
RATIONALE will be $24,000. If the client can invest at 11% annually, how much should the client
The HP 12C keystrokes: 24,000 [FV]; 11 [g] [i], 15[g] [n], deposit each month to have the required funds at the end of 15 years? (Round your
[PMT]. (Note: The blue key [g] is used when monthly answer to the nearest penny.)
payments, or compounding, are noted in the question.
When you press the blue key [g], it is "times 12," indicating
that the payments are paid monthly or the compounding is
monthly.)
RATIONALE Which is a true statement regarding the reconciliation process as defined by
Standards Rule 1-6 in its entirety: In developing a real Standards Rule 1-6?
property appraisal, an appraiser must: (a) reconcile the
quality and quantity of data available and analyzed within
the approaches used; and (b) reconcile the applicability or
suitability of the approaches, methods, and techniques
used to arrive at the value conclusion(s).
highest and best use Which analysis is important and required when necessary for credible results by
RATIONALE Standards Rule 1-3 of USPAP for a market value assignment that may not be
Standards Rule 1-3 of USPAP requires the appraiser, applicable with other types of value?
when necessary to obtain credible results, to develop an
opinion of highest and best use for the real estate when
the opinion of value being developed in an assignment is
market value. The concept of highest and best use is often
not applicable with other value types.
exposure time When it is a component of the definition for the value opinion being developed, what
RATIONALE analysis and opinion, related to market conditions, must an appraiser also develop?
Standards Rule 1-2 of USPAP requires that when
reasonable exposure time is a component of the definition
for the value opinion being developed, the appraiser must
also develop an opinion of reasonable exposure time
linked to that value opinion.
a citation of the source of the definition of value being used Standards Rule 2-2 of USPAP requires an appraiser to state the type and definition
in the assignment of value and provide what other information relating to the type and definition of
RATIONALE value?
Standards Rule 2-2 (v) of USPAP requires the appraiser to
state the type and definition of value and to cite the source
of the definition in order to clearly indicate to intended
users how the definition is being applied.
$555.71 What is the monthly payment for a 25-year loan at 8% if the sale price is $80,000
QUESTION RATIONALE and the loan-to-value ratio is 90%?
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]
5600 An $80,000 property has a first mortgage equaling 70% of its value at 10% interest
QUESTION RATIONALE with annual payments. The owner requires 14% return on equity. In dollars, what is
Simple interest does not take into consideration the simple interest in the first year of the mortgage?
compounding or periodic reduction. Therefore, the simple
interest due in the first year is 10% of the amount
borrowed: 70% of $80,000 ($80,000 x 0.70) is $56,000 x
0.10 = $5,600.
2026
Review
2026
Master Exam Prep Bundle
(Verified Questions & Answers)
A+ Grade Guaranteed
,Steps. For the purpose of estimating depreciation via the extraction method, you have
1. Determine Cost New utilized Comparable Sale #1, which is a 2,400 sq. ft. home with a two-car, 440 sq. ft.
Main house 2400 SF x 85/SF =204,000 attached garage, having a replacement cost of $85/sq. ft. for gross living area and
Garage 440 x 18/SF = 7920 $18/sq. ft. for the garage area. This property sold for $240,000 and has a
====================================== chronological age of 10 years. Through your research, the indicated land value is
204,000 + 92 = 211,920 $50,000 and the site improvements have a replacement cost of $25,000. What is
the percentage total amount of accrued depreciation indicated by this sale?
2. Determine Depreciation Cost
Sale Price 240,000 -
Land Value 50,000 -
Improvements 25,000
========================
165,000
3. Determine Total Depreciation
Cost New 211,920 - Depreciation Cost 165,000 = 46,920
4. Determine Depreciation Percentage
Cost New 211,920/Total Depreciation 46,920 = 22.14%
Allocation: a method of estimating land value in which Allocation method vs. extraction method
sales of improved properties are analyzed to establish a
typical ratio of site value to total property value and this
ratio is applied to the property being appraised or the
comparable being analyzed.
Extraction: a method of estimating land value in which the
depreciated cost of the improvement on the improved
property is estimated and deducted from the total sale
price to arrive at an estimated sale price for the land; most
effective when the improvements contribute little to the
total sale price of the property.
size Which is a physical force in relationship to value?
utilize the site as one home site, since the site cannot What is the highest and best use of a rural property that has 300 lineal feet of
legally be split frontage and a depth of 300 lineal feet, when zoning requires a site to be at least
two acres for the development of a single-family home?
effective demand. Regardless of the desire for a property in a particular market, if there is not general
RATIONALE The characteristic of purchase ability, or purchase ability linked to the desire within the market, the market is lacking
affordability, is known as effective demand or effective
purchasing power.
scarcity and utility. DUST Which of the following characteristics create value in real estate?
it could remain in that phase indefinitely. Once a neighborhood has reached the phase of stability in its life cycle
RATIONALE
Stability is when buyer interest in the neighborhood
remains strong and prices rarely drop. Some
neighborhoods remain in this stage and don't experience
decline.
If the condition is not adhered to, the title to the property Legal interest of a subject property was conveyed to the current owner as fee
could be forfeited simple conditional. What can be best said about the estate held by the current
RATIONALE owner?
Fee simple conditional provides that the owner may hold
the estate only as long as some specified act or condition
does or does not occur. Thus, if the condition is not
observed, the owner could forfeit title.
2026
,Life estate with a reversionary interest When an individual has a freehold estate that only lasts as long as a specified
RATIONALE person lives and then the interest goes back to the grantor or the grantor's heirs,
A life estate is a freehold estate that lasts only as long as a what type of freehold estate does the individual have?
specified person lives. A life estate with a reversionary
interest means that the property will go back (revert) to the
grantor or the grantor's heirs.
increases at a decreasing rate. As the depth of the lot increases, the value per front footage
RATIONALE
With a fixed frontage, as the depth of the lot increases, the
overall value of the lot increases. However, as the lot
extends back, the value of the land farther back becomes
less and the increase in overall value becomes smaller.
Therefore, the front foot rate will increase, but as the lot
extends farther back, the amount of increase in rate will
decrease.
takes a ratio of the land or site value to the total improved The allocation method for determining site value
value.
RATIONALE
When the ratio of land to total value is calculated for the
comparable sales and then applied to the subject, the
allocation method is being used.
$8,756 Six homes sold within the past few months. What is the standard deviation among
RATIONALE the data provided? $150,000, $165,000, $148,000, $156,000, $163,000, $170,000
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.
12.30 Using this number set, find the standard deviation: 47 - 14 - 37 - 29 - 37, rounded to
RATIONALE two places.
HP 12C method: 47 [Sigma+], 14 [Sigma+], 37 [Sigma+],
29 [Sigma+], 37 [Sigma+], [g] [s] = 12.2963, or 12.30
rounded. Be sure to clear all registers before beginning
entries. The[s]key is the decimal key ('s' in blue on front of
key).
22.14% For the purpose of estimating depreciation via the extraction method, you have
RATIONAL: utilized Comparable Sale #1, which is a 2,400 sq. ft. home with a two-car, 440 sq. ft.
1. Cost new = (2,400 sq. ft. x $85) + (440 sq. ft. x $18) = attached garage, having a replacement cost of $85/sq. ft. for gross living area and
$211,920. $18/sq. ft. for the garage area. This property sold for $240,000 and has a
chronological age of 10 years. Through your research, the indicated land value is
2. Depreciation Cost = $50,000 and the site improvements have a replacement cost of $25,000. What is
Sale Price $240,000 - the percentage total amount of accrued depreciation indicated by this sale?
Land Value $50,000 -
Site Improve $25,000 = $165,000
.
3. Total Depreciation = $46,920 ($211,920 - $165,000).
4. Percentage of Depreciation Depreciation / Cost new
(46,,920 = 0.2214 or 22.14%).
52% An appraiser must determine the cost of carpet in a residential dwelling. The areas
RATIONALE \First, determine the square footage of the needing carpet measure 12' x 14', 15.5' x 17.25', and 12.3' x 17.5'. If the carpet
three areas needing carpet: 12 x 14 = 168 sq. ft., 15.5 x must be purchased in full square yards and will cost $14.50 per square yard, and
17.25 = 267.375 sq. ft., and 12.3 x 17.5 = 215.25 sq. ft. the installation is $1.50 per square foot, what percent of the total cost is for the
Next, add the three areas together: 168 + 267.375 + carpet?
215.25 = 650.625 sq. ft. To convert square yards to square
feet, divide by 9: 650. = 72.291666, or 73 full
square yards. Now, determine the cost of the carpet: 73
square yards x $14.50 = $1,058.50. The next step is to
determine the installation cost: 650.625 sq. ft. x $1.50 =
$975.94. Thus, the total cost for carpet and installation
would be $2,034.44 ($1,058.50 + $975.94). $1,058.50
(cost of carpet) / $2,034.44 (total cost) = 0.52, or 52%.
ID: 10027
2026
, RATIONALE A concrete patio measures 20' x 26'. The concrete slab is four inches thick. If
1. First, calculate the cubic feet of the concrete patio: 20 concrete costs $37.85 per cubic yard, what would be the cost of the concrete?
(Length) x 26 (Width) x 0.3333 (Depth, four inches is 1/3 of (Round to nearest dollar.)
a foot) = 173.316 Cubic Feet.
2. Convert cubic feet to cubic yards by dividing by 27:
173.316 cubic feet / 27 = 6.4191 Cubic Yards. 3. Now,
determine the cost of concrete needed: 6.4191 Cubic
Yards x $37.85 = $242.96, or rounded $243.
$171,196 If $8,500 is deposited each year into an investment account at 9% annual interest,
RATIONALE how much will be in the account at the end of 12 years? (Round your answer to the
The HP 12C keystrokes: 8,500 [PMT], 9 [i], 12 [n], [FV]. nearest dollar.)
52.7833 A client's building will need a new roof in 15 years. The estimated cost at that time
RATIONALE will be $24,000. If the client can invest at 11% annually, how much should the client
The HP 12C keystrokes: 24,000 [FV]; 11 [g] [i], 15[g] [n], deposit each month to have the required funds at the end of 15 years? (Round your
[PMT]. (Note: The blue key [g] is used when monthly answer to the nearest penny.)
payments, or compounding, are noted in the question.
When you press the blue key [g], it is "times 12," indicating
that the payments are paid monthly or the compounding is
monthly.)
RATIONALE Which is a true statement regarding the reconciliation process as defined by
Standards Rule 1-6 in its entirety: In developing a real Standards Rule 1-6?
property appraisal, an appraiser must: (a) reconcile the
quality and quantity of data available and analyzed within
the approaches used; and (b) reconcile the applicability or
suitability of the approaches, methods, and techniques
used to arrive at the value conclusion(s).
highest and best use Which analysis is important and required when necessary for credible results by
RATIONALE Standards Rule 1-3 of USPAP for a market value assignment that may not be
Standards Rule 1-3 of USPAP requires the appraiser, applicable with other types of value?
when necessary to obtain credible results, to develop an
opinion of highest and best use for the real estate when
the opinion of value being developed in an assignment is
market value. The concept of highest and best use is often
not applicable with other value types.
exposure time When it is a component of the definition for the value opinion being developed, what
RATIONALE analysis and opinion, related to market conditions, must an appraiser also develop?
Standards Rule 1-2 of USPAP requires that when
reasonable exposure time is a component of the definition
for the value opinion being developed, the appraiser must
also develop an opinion of reasonable exposure time
linked to that value opinion.
a citation of the source of the definition of value being used Standards Rule 2-2 of USPAP requires an appraiser to state the type and definition
in the assignment of value and provide what other information relating to the type and definition of
RATIONALE value?
Standards Rule 2-2 (v) of USPAP requires the appraiser to
state the type and definition of value and to cite the source
of the definition in order to clearly indicate to intended
users how the definition is being applied.
$555.71 What is the monthly payment for a 25-year loan at 8% if the sale price is $80,000
QUESTION RATIONALE and the loan-to-value ratio is 90%?
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]
5600 An $80,000 property has a first mortgage equaling 70% of its value at 10% interest
QUESTION RATIONALE with annual payments. The owner requires 14% return on equity. In dollars, what is
Simple interest does not take into consideration the simple interest in the first year of the mortgage?
compounding or periodic reduction. Therefore, the simple
interest due in the first year is 10% of the amount
borrowed: 70% of $80,000 ($80,000 x 0.70) is $56,000 x
0.10 = $5,600.
2026
