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Ohio Certified General Appraiser EXAM QUESTIONS AND
CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR –
JUST RELEASED
Ohio Certified General Appraiser Exam – Study Guide & 250 MCQ Questions with Rationale
Exam Coverage Overview (Ohio CG Exam Content Areas)
1. Influences on real estate value – Supply/demand dynamics, market behavior, and
economic conditions affecting property values
2. Legal considerations – Property rights, ownership types, encumbrances, and Ohio-
specific laws
3. Types of value – Market value, investment value, use value, assessed value, and
liquidation value
4. Economic principles – Substitution, anticipation, balance, contribution, change, and
externalities
5. Real estate markets & analysis – Market data collection, verification, and absorption
rate analysis
6. Valuation process – Steps from problem identification to reconciliation
7. Property description – Legal descriptions, site analysis, and physical characteristics
8. Highest and best use analysis – Four tests: legally permissible, physically possible,
financially feasible, maximally productive
9. Appraisal math & statistics – Financial calculations, statistics, modeling, and time value
of money
10. Sales comparison approach – Comparable selection, adjustments, and reconciliation
11. Site value – Land valuation, allocation, and extraction methods
12. Cost approach – Replacement/reproduction cost, depreciation types, and cost
estimation
13. Income approach – NOI, cap rates, GRM, DCF, and yield capitalization
14. Valuation of partial interests – Leased fee, leasehold, and fractional interests
15. Appraisal standards & ethics – USPAP compliance, Ethics Rule, Competency Rule, and
Record Keeping Rule
16. Ohio real estate & appraisal laws – Ohio Revised Code 4763, DLGF requirements, and
state-specific regulations
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Section 1: Influences on Real Estate Value & Economic Principles (Questions 1-50)
1. The fundamental economic concept describing the maximum price a typical, well-informed
buyer would pay in an open market is:
A) Investment value
B) Use value
C) Market value
D) Assessed value
Rationale: Market value is defined as the most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale, with both buyer and
seller acting prudently and knowledgeably. Investment value is specific to a particular investor,
use value is property-specific, and assessed value is for tax purposes.
2. The principle that a property's value is maximized when its components are in harmony is
known as the principle of:
A) Substitution
B) Balance
C) Contribution
D) Anticipation
Rationale: The principle of balance states that maximum value is achieved when land and
improvements are in proper proportion. Over-improvement or under-improvement relative to
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the site can reduce value. Substitution relates to comparable alternatives, contribution relates
to component value, and anticipation relates to future benefits.
3. The principle of substitution states that a prudent buyer will:
A) Always pay more for unique properties
B) Pay no more for a property than the cost of acquiring an equally desirable substitute
C) Pay based solely on construction costs
D) Pay regardless of market conditions
Rationale: The principle of substitution is foundational to all three approaches to value. A buyer
will not pay more for a property than the cost of acquiring an equally desirable substitute
property with the same utility. This principle underlies both the sales comparison and cost
approaches.
4. The economic principle of "anticipation" in real estate valuation is best described as:
A) Value is created by the expectation of future benefits or income
B) The value of a property is based on the cost of reproducing it
C) Value is determined by the price of similar, competing properties
D) Property values tend to follow a cyclical pattern
Rationale: Anticipation is the principle that value is created by the expectation of future
benefits to be derived from the property. This is the basis for the income capitalization
approach and involves forecasting future income streams. Buyers purchase property based on
expected future benefits.
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5. The principle of contribution in real estate valuation holds that:
A) All components contribute equally to total value
B) The value of a component is determined by its contribution to the total property value
C) Only land contributes to property value
D) Improvements always contribute more than land
Rationale: The principle of contribution states that the value of a component or feature is
measured by its contribution to overall property value. Components may contribute less or
more than their cost, depending on market demand. This principle is especially relevant when
analyzing renovations or improvements.
6. Which economic principle explains that property values are influenced by surrounding
properties?
A) Substitution and contribution
B) Progression and regression
C) Anticipation and change
D) Supply and demand
Rationale: Progression and regression describe how property values are influenced by
surrounding properties. Progression occurs when a lesser property's value increases due to
association with superior properties. Regression occurs when a superior property's value
decreases due to association with inferior properties.
7. The principle of change recognizes that real estate values:
A) Never change once established
Ohio Certified General Appraiser EXAM QUESTIONS AND
CORRECT VERIFIED SOLUTIONS LATEST UPDATE THIS YEAR –
JUST RELEASED
Ohio Certified General Appraiser Exam – Study Guide & 250 MCQ Questions with Rationale
Exam Coverage Overview (Ohio CG Exam Content Areas)
1. Influences on real estate value – Supply/demand dynamics, market behavior, and
economic conditions affecting property values
2. Legal considerations – Property rights, ownership types, encumbrances, and Ohio-
specific laws
3. Types of value – Market value, investment value, use value, assessed value, and
liquidation value
4. Economic principles – Substitution, anticipation, balance, contribution, change, and
externalities
5. Real estate markets & analysis – Market data collection, verification, and absorption
rate analysis
6. Valuation process – Steps from problem identification to reconciliation
7. Property description – Legal descriptions, site analysis, and physical characteristics
8. Highest and best use analysis – Four tests: legally permissible, physically possible,
financially feasible, maximally productive
9. Appraisal math & statistics – Financial calculations, statistics, modeling, and time value
of money
10. Sales comparison approach – Comparable selection, adjustments, and reconciliation
11. Site value – Land valuation, allocation, and extraction methods
12. Cost approach – Replacement/reproduction cost, depreciation types, and cost
estimation
13. Income approach – NOI, cap rates, GRM, DCF, and yield capitalization
14. Valuation of partial interests – Leased fee, leasehold, and fractional interests
15. Appraisal standards & ethics – USPAP compliance, Ethics Rule, Competency Rule, and
Record Keeping Rule
16. Ohio real estate & appraisal laws – Ohio Revised Code 4763, DLGF requirements, and
state-specific regulations
, Page 2 of 106
Section 1: Influences on Real Estate Value & Economic Principles (Questions 1-50)
1. The fundamental economic concept describing the maximum price a typical, well-informed
buyer would pay in an open market is:
A) Investment value
B) Use value
C) Market value
D) Assessed value
Rationale: Market value is defined as the most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale, with both buyer and
seller acting prudently and knowledgeably. Investment value is specific to a particular investor,
use value is property-specific, and assessed value is for tax purposes.
2. The principle that a property's value is maximized when its components are in harmony is
known as the principle of:
A) Substitution
B) Balance
C) Contribution
D) Anticipation
Rationale: The principle of balance states that maximum value is achieved when land and
improvements are in proper proportion. Over-improvement or under-improvement relative to
, Page 3 of 106
the site can reduce value. Substitution relates to comparable alternatives, contribution relates
to component value, and anticipation relates to future benefits.
3. The principle of substitution states that a prudent buyer will:
A) Always pay more for unique properties
B) Pay no more for a property than the cost of acquiring an equally desirable substitute
C) Pay based solely on construction costs
D) Pay regardless of market conditions
Rationale: The principle of substitution is foundational to all three approaches to value. A buyer
will not pay more for a property than the cost of acquiring an equally desirable substitute
property with the same utility. This principle underlies both the sales comparison and cost
approaches.
4. The economic principle of "anticipation" in real estate valuation is best described as:
A) Value is created by the expectation of future benefits or income
B) The value of a property is based on the cost of reproducing it
C) Value is determined by the price of similar, competing properties
D) Property values tend to follow a cyclical pattern
Rationale: Anticipation is the principle that value is created by the expectation of future
benefits to be derived from the property. This is the basis for the income capitalization
approach and involves forecasting future income streams. Buyers purchase property based on
expected future benefits.
, Page 4 of 106
5. The principle of contribution in real estate valuation holds that:
A) All components contribute equally to total value
B) The value of a component is determined by its contribution to the total property value
C) Only land contributes to property value
D) Improvements always contribute more than land
Rationale: The principle of contribution states that the value of a component or feature is
measured by its contribution to overall property value. Components may contribute less or
more than their cost, depending on market demand. This principle is especially relevant when
analyzing renovations or improvements.
6. Which economic principle explains that property values are influenced by surrounding
properties?
A) Substitution and contribution
B) Progression and regression
C) Anticipation and change
D) Supply and demand
Rationale: Progression and regression describe how property values are influenced by
surrounding properties. Progression occurs when a lesser property's value increases due to
association with superior properties. Regression occurs when a superior property's value
decreases due to association with inferior properties.
7. The principle of change recognizes that real estate values:
A) Never change once established
