CGA EXACT EXAM QUESTIONS WITH 100% VERIFIED
ANSWERS 2024-2025
The "as vacant" highest and best use is retail, while the "as improved" highest and
best use is single tenant-office.... What concept governs the valuation process? -
ANSWER Consistent Use
The property's site is rented for $40,000 per year, which is deemed market rate. The
site accounts for 35% of the entire value. The total cap rate is 10%, whereas the
building cap rate is 11%. What is the site's value? - Answer: $491,228.
A property was purchased for $325,000, and the buyer planned to keep it for five
years. The pro forma predictions indicate a net operating income of $30,000 for
Years 1 and 2, $35,000 for Years 3 and 4, and $37,000 for Year 5. The property is
predicted to improve in value to $375k by the conclusion of the holding period.
What is the total capitalization rate for the investment? - ANSWER: 12.5%
Is the appraiser permitted to consider information obtained after the effective date
of value when completing a market value evaluation with a retrospective date of
value, and why? - ANSWER Yes, the appraiser may use data later to the effective
date to confirm trends.
Which of the following demand-side economic factors adds value? - ANSWER
Desire and effective buying power
*"Always Appears" - If the overall cap rate for fee simple interest is 10% and the
leased fee cap rate is 8.5%, then the market net operating income is $20,000 and
the contract net operating income is $12,500. What is the implicit leasehold
capitalization rate? - ANSWER: 14.17%
A staff appraiser who has worked for a local bank for five years plans to depart to
start his own evaluation business. Must the appraiser remove all work files for bank
, tasks completed? - ANSWER No, the appraiser can make arrangements with the
bank to obtain or collect the files.
The subject property is a 5,000-square-foot single-tenant office structure that is
currently leased for $9.00 per square foot with three years remaining. Vacancy
credit loss: 10%... owner expenses: 25% of effective gross income... market rent:
$12 per square foot per year. The market overall rate is 9.5%. A leasehold interest
sold for $29,000 with a net leasehold income of $12000 a year for the remaining
three years. How much is the leasehold estate worth, rounded to the nearest? $1000
- Answer: $36,000
A property sold for $330,000 with a 10% down payment and a 20-year mortgage at
7.5% interest with monthly payments. The property generates $42k in gross annual
income, with an 8% vacancy and collection loss, and annual expenses of $8k. What
equity dividend rate is implied by this sale? - ANSWER: 5.85%
A property with stabilized occupancy has a market worth of $2,300,000. The
immediate building costs $1,500,000. The indirect costs are $200,000, while the
land costs are $125,000. What is the indicated entrepreneurial profit? - ANSWER:
$475,000.
What is the phrase for dividing an entire market based on buyer and seller
preferences? ANSWER Submarket
The subject property includes 200 acres of improved grassland, 300 acres of native
pasture, and 500 acres of woodland. Comp A has 300 acres of improved pasture,
300 acres of native pasture, and 400 acres of woods. Comp A sold for $1,050 per
acre. Assuming natural grassland sells for 80% of enhanced pasture prices and
woodland sells for 40% of improved pasture pricing, what is the subject property's
per-acre value? - Answer: $960 per acre.
ANSWERS 2024-2025
The "as vacant" highest and best use is retail, while the "as improved" highest and
best use is single tenant-office.... What concept governs the valuation process? -
ANSWER Consistent Use
The property's site is rented for $40,000 per year, which is deemed market rate. The
site accounts for 35% of the entire value. The total cap rate is 10%, whereas the
building cap rate is 11%. What is the site's value? - Answer: $491,228.
A property was purchased for $325,000, and the buyer planned to keep it for five
years. The pro forma predictions indicate a net operating income of $30,000 for
Years 1 and 2, $35,000 for Years 3 and 4, and $37,000 for Year 5. The property is
predicted to improve in value to $375k by the conclusion of the holding period.
What is the total capitalization rate for the investment? - ANSWER: 12.5%
Is the appraiser permitted to consider information obtained after the effective date
of value when completing a market value evaluation with a retrospective date of
value, and why? - ANSWER Yes, the appraiser may use data later to the effective
date to confirm trends.
Which of the following demand-side economic factors adds value? - ANSWER
Desire and effective buying power
*"Always Appears" - If the overall cap rate for fee simple interest is 10% and the
leased fee cap rate is 8.5%, then the market net operating income is $20,000 and
the contract net operating income is $12,500. What is the implicit leasehold
capitalization rate? - ANSWER: 14.17%
A staff appraiser who has worked for a local bank for five years plans to depart to
start his own evaluation business. Must the appraiser remove all work files for bank
, tasks completed? - ANSWER No, the appraiser can make arrangements with the
bank to obtain or collect the files.
The subject property is a 5,000-square-foot single-tenant office structure that is
currently leased for $9.00 per square foot with three years remaining. Vacancy
credit loss: 10%... owner expenses: 25% of effective gross income... market rent:
$12 per square foot per year. The market overall rate is 9.5%. A leasehold interest
sold for $29,000 with a net leasehold income of $12000 a year for the remaining
three years. How much is the leasehold estate worth, rounded to the nearest? $1000
- Answer: $36,000
A property sold for $330,000 with a 10% down payment and a 20-year mortgage at
7.5% interest with monthly payments. The property generates $42k in gross annual
income, with an 8% vacancy and collection loss, and annual expenses of $8k. What
equity dividend rate is implied by this sale? - ANSWER: 5.85%
A property with stabilized occupancy has a market worth of $2,300,000. The
immediate building costs $1,500,000. The indirect costs are $200,000, while the
land costs are $125,000. What is the indicated entrepreneurial profit? - ANSWER:
$475,000.
What is the phrase for dividing an entire market based on buyer and seller
preferences? ANSWER Submarket
The subject property includes 200 acres of improved grassland, 300 acres of native
pasture, and 500 acres of woodland. Comp A has 300 acres of improved pasture,
300 acres of native pasture, and 400 acres of woods. Comp A sold for $1,050 per
acre. Assuming natural grassland sells for 80% of enhanced pasture prices and
woodland sells for 40% of improved pasture pricing, what is the subject property's
per-acre value? - Answer: $960 per acre.
