Ohio Certified General Appraiser Exam Practice
Questions and Correct Answers (100% Verified
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Section 1: Appraisal Principles and Value Theory (Questions 1-40)
1. The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Answer: B
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.
2. What interdependent economic factors create value?
A) Amenities, assemblage, scarcity and effective purchasing power
B) Utility, scarcity, desire, and plotage
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and effective purchasing power
Answer: D
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).
3. The principle of substitution states that:
A) A buyer will pay more for a property than for a comparable substitute
1
,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
The principle of substitution holds that a prudent buyer will pay no more for a property than the cost of
acquiring a similar substitute property with the same utility .
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
The principle of change recognizes that market conditions, demographics, and economic factors
continuously impact property value .
5. Which is the highest and best use analysis required to determine?
A) The tax assessment of the property
B) The most profitable use of the property
C) The replacement cost estimate
D) The mortgage loan value
Answer: B
Highest and best use analysis ensures the property is valued according to its most profitable legally
permissible, physically possible, and financially feasible use .
6. The four tests of highest and best use are:
A) Physically possible, legally permitted, economically feasible, and maximally productive
2
,B) Physically possible, financially feasible, legally permitted, and desirable
C) Economically feasible, physically possible, legally permissible, and marketable
D) Legally permitted, physically possible, economically feasible, and socially acceptable
Answer: A
The four tests of highest and best use are physically possible, legally permitted, economically feasible,
and maximally productive.
7. A property's "effective age" is best described as:
A) The chronological age of the property
B) The apparent age based on condition and upkeep
C) The date of original construction
D) The age of the land only
Answer: B
Effective age reflects how old a property appears based on maintenance and condition, which may differ
from its actual chronological age.
8. Which is an example of a curable physical depreciation?
A) Structural foundation issues
B) Peeling paint
C) Economic obsolescence
D) Functional inadequacy
Answer: B
Peeling paint is curable physical depreciation because it can be economically corrected. Structural issues
are typically incurable, and economic obsolescence is generally incurable by the property owner .
9. The term "accrued depreciation" refers to:
A) Future depreciation expected to occur
3
, B) Loss in value from all causes as of the appraisal date
C) Market decline over time
D) Tax depreciation allowed by the IRS
Answer: B
Accrued depreciation measures the total loss in value from physical deterioration, functional
obsolescence, and external obsolescence as of the date of appraisal .
10. Which type of depreciation is generally incurable?
A) Deferred maintenance
B) Physical wear and tear
C) External/economic obsolescence
D) Curable functional obsolescence
Answer: C
External obsolescence is incurable because it arises from factors outside the property owner's control,
such as location or environmental issues .
11. Which appraisal approach is most appropriate for special-use properties (e.g., churches, schools)?
A) Sales comparison approach
B) Cost approach
C) Income capitalization approach
D) Gross rent multiplier
Answer: B
The cost approach is most useful for special-purpose buildings because they rarely sell and do not
typically generate income comparable to market transactions .
12. The cost approach estimates value by:
A) Using market data only
4
Questions and Correct Answers (100% Verified
Answers) Plus Rationales 2026|2027 Q&A | Instant
Pdf Download
Section 1: Appraisal Principles and Value Theory (Questions 1-40)
1. The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Answer: B
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.
2. What interdependent economic factors create value?
A) Amenities, assemblage, scarcity and effective purchasing power
B) Utility, scarcity, desire, and plotage
C) Amenities, plotage, desire, and supply/demand
D) Utility, scarcity, desire, and effective purchasing power
Answer: D
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).
3. The principle of substitution states that:
A) A buyer will pay more for a property than for a comparable substitute
1
,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
The principle of substitution holds that a prudent buyer will pay no more for a property than the cost of
acquiring a similar substitute property with the same utility .
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
The principle of change recognizes that market conditions, demographics, and economic factors
continuously impact property value .
5. Which is the highest and best use analysis required to determine?
A) The tax assessment of the property
B) The most profitable use of the property
C) The replacement cost estimate
D) The mortgage loan value
Answer: B
Highest and best use analysis ensures the property is valued according to its most profitable legally
permissible, physically possible, and financially feasible use .
6. The four tests of highest and best use are:
A) Physically possible, legally permitted, economically feasible, and maximally productive
2
,B) Physically possible, financially feasible, legally permitted, and desirable
C) Economically feasible, physically possible, legally permissible, and marketable
D) Legally permitted, physically possible, economically feasible, and socially acceptable
Answer: A
The four tests of highest and best use are physically possible, legally permitted, economically feasible,
and maximally productive.
7. A property's "effective age" is best described as:
A) The chronological age of the property
B) The apparent age based on condition and upkeep
C) The date of original construction
D) The age of the land only
Answer: B
Effective age reflects how old a property appears based on maintenance and condition, which may differ
from its actual chronological age.
8. Which is an example of a curable physical depreciation?
A) Structural foundation issues
B) Peeling paint
C) Economic obsolescence
D) Functional inadequacy
Answer: B
Peeling paint is curable physical depreciation because it can be economically corrected. Structural issues
are typically incurable, and economic obsolescence is generally incurable by the property owner .
9. The term "accrued depreciation" refers to:
A) Future depreciation expected to occur
3
, B) Loss in value from all causes as of the appraisal date
C) Market decline over time
D) Tax depreciation allowed by the IRS
Answer: B
Accrued depreciation measures the total loss in value from physical deterioration, functional
obsolescence, and external obsolescence as of the date of appraisal .
10. Which type of depreciation is generally incurable?
A) Deferred maintenance
B) Physical wear and tear
C) External/economic obsolescence
D) Curable functional obsolescence
Answer: C
External obsolescence is incurable because it arises from factors outside the property owner's control,
such as location or environmental issues .
11. Which appraisal approach is most appropriate for special-use properties (e.g., churches, schools)?
A) Sales comparison approach
B) Cost approach
C) Income capitalization approach
D) Gross rent multiplier
Answer: B
The cost approach is most useful for special-purpose buildings because they rarely sell and do not
typically generate income comparable to market transactions .
12. The cost approach estimates value by:
A) Using market data only
4
