Ohio Certified General Appraiser Exam 2026-139 QUESTIONS AND ANSWERS
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Ohio Certified General Appraiser Exam 2026 Practice Questions
180 Multiple-Choice Questions with Answers and Rationales
SECTION 1: INFLUENCES ON REAL ESTATE VALUE & ECONOMIC PRINCIPLES
(Questions 1-25)
Question 1
The principle of substitution states that a buyer will pay no more for a property
than:
A) The cost to reproduce the property new
B) The cost of acquiring an equally desirable substitute property with the same
utility
C) The assessed value determined by the county auditor
D) The price of the most expensive comparable in the market
Answer: B
Rationale: The principle of substitution is fundamental to the sales comparison
approach. It holds that a rational buyer will not pay more for a property than the
cost of acquiring a similar substitute property with the same utility and
,desirability. This principle underlies market value estimation because comparable
sales establish value ceilings.
Question 2
Which of the following is a principle of value in real estate appraisal?
A) Diminishing utility
B) Inflation
C) Risk
D) Arbitrage
Answer: A
Rationale: Diminishing utility is a recognized economic principle in real estate
valuation, reflecting that additional units of a good provide decreasing
satisfaction. Other key value principles include substitution, highest and best use,
anticipation, balance, and contribution.
Question 3
A property suffers value loss because of heavy traffic noise from a nearby
highway. This is BEST classified as:
A) Functional obsolescence
,B) Physical deterioration
C) External obsolescence
D) Economic life reduction
Answer: C
Rationale: External obsolescence (also called economic obsolescence) originates
outside the property boundaries. Traffic noise from a nearby highway is an
external factor that reduces property value and is generally incurable because the
appraiser cannot control external conditions.
Question 4
The principle of anticipation states that value is:
A) Determined solely by historical cost
B) Influenced by expected future benefits
C) Based on current market conditions only
D) Equal to the assessed value
Answer: B
Rationale: The principle of anticipation asserts that property value is affected by
expected future benefits, such as future rental income, appreciation potential, or
, development opportunities. Investors purchase property for its anticipated future
returns, not just current conditions.
Question 5
The principle of conformity suggests that:
A) Value declines when a property differs significantly from its neighbors
B) All properties should be identical to maximize value
C) Value is independent of surrounding properties
D) Older homes always have lower value
Answer: A
Rationale: The principle of conformity holds that maximum value is achieved
when properties are similar in style, size, and condition to surrounding properties.
A property that differs significantly from its neighborhood may suffer diminished
value due to lack of compatibility.
Question 6
The principle of balance in real estate valuation means:
A) Property value increases with more improvements
B) Value is maximized when land and improvements are in proper proportion
ALREADY GRADED A+. 100% Verified Solutions Updated Per Latest Guidelines
Graded A+..
Ohio Certified General Appraiser Exam 2026 Practice Questions
180 Multiple-Choice Questions with Answers and Rationales
SECTION 1: INFLUENCES ON REAL ESTATE VALUE & ECONOMIC PRINCIPLES
(Questions 1-25)
Question 1
The principle of substitution states that a buyer will pay no more for a property
than:
A) The cost to reproduce the property new
B) The cost of acquiring an equally desirable substitute property with the same
utility
C) The assessed value determined by the county auditor
D) The price of the most expensive comparable in the market
Answer: B
Rationale: The principle of substitution is fundamental to the sales comparison
approach. It holds that a rational buyer will not pay more for a property than the
cost of acquiring a similar substitute property with the same utility and
,desirability. This principle underlies market value estimation because comparable
sales establish value ceilings.
Question 2
Which of the following is a principle of value in real estate appraisal?
A) Diminishing utility
B) Inflation
C) Risk
D) Arbitrage
Answer: A
Rationale: Diminishing utility is a recognized economic principle in real estate
valuation, reflecting that additional units of a good provide decreasing
satisfaction. Other key value principles include substitution, highest and best use,
anticipation, balance, and contribution.
Question 3
A property suffers value loss because of heavy traffic noise from a nearby
highway. This is BEST classified as:
A) Functional obsolescence
,B) Physical deterioration
C) External obsolescence
D) Economic life reduction
Answer: C
Rationale: External obsolescence (also called economic obsolescence) originates
outside the property boundaries. Traffic noise from a nearby highway is an
external factor that reduces property value and is generally incurable because the
appraiser cannot control external conditions.
Question 4
The principle of anticipation states that value is:
A) Determined solely by historical cost
B) Influenced by expected future benefits
C) Based on current market conditions only
D) Equal to the assessed value
Answer: B
Rationale: The principle of anticipation asserts that property value is affected by
expected future benefits, such as future rental income, appreciation potential, or
, development opportunities. Investors purchase property for its anticipated future
returns, not just current conditions.
Question 5
The principle of conformity suggests that:
A) Value declines when a property differs significantly from its neighbors
B) All properties should be identical to maximize value
C) Value is independent of surrounding properties
D) Older homes always have lower value
Answer: A
Rationale: The principle of conformity holds that maximum value is achieved
when properties are similar in style, size, and condition to surrounding properties.
A property that differs significantly from its neighborhood may suffer diminished
value due to lack of compatibility.
Question 6
The principle of balance in real estate valuation means:
A) Property value increases with more improvements
B) Value is maximized when land and improvements are in proper proportion
