Maryland Certified General Appraiser
Exam With Actual Questions & Correct
Answers, Plus Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. Which approach to value is most appropriate for a newly
constructed special-purpose property?
A. Sales comparison approach
B. Cost approach
C. Income approach
D. Gross rent multiplier approach
Answer: B
Rationale: The cost approach is most reliable for special-purpose
or new properties where comparable sales or income data is
limited.
2. In appraisal, highest and best use must be:
A. Legally permissible only
B. Physically possible only
C. Maximally productive and legally permissible
D. Based on current zoning only
Answer: C
Rationale: Highest and best use considers legality, physical
possibility, financial feasibility, and maximum productivity.
,3. Which is an example of external obsolescence?
A. Roof deterioration
B. Outdated floor plan
C. Nearby industrial pollution
D. Poor maintenance
Answer: C
Rationale: External obsolescence is caused by factors outside the
property, such as environmental or economic influences.
4. Depreciation that can be cured is called:
A. External
B. Functional incurable
C. Physical curable
D. Economic
Answer: C
Rationale: Curable physical depreciation can be corrected
through repairs or maintenance.
5. The principle that value is influenced by surrounding properties is:
A. Substitution
B. Contribution
C. Progression and regression
D. Anticipation
Answer: C
Rationale: Progression and regression describe how higher or
lower property values are affected by neighboring properties.
,6. Which statement best describes substitution?
A. Value increases with improvements
B. Buyers pay no more than similar properties cost
C. Value is based on income potential
D. Cost equals value
Answer: B
Rationale: Buyers will not pay more for a property than the cost
of an equally desirable substitute.
7. The income capitalization approach is most appropriate for:
A. Vacant land
B. Income-producing property
C. Historic homes
D. Personal residences only
Answer: B
Rationale: Income properties are best valued using capitalization
of income.
8. Direct capitalization converts:
A. Costs into value
B. Future income into present value using one rate
C. Market data into depreciation
D. Sales price into rent
Answer: B
Rationale: Direct capitalization uses a single rate to convert
income into value.
, 9. Which is NOT a type of cost in the cost approach?
A. Direct costs
B. Indirect costs
C. Entrepreneurial incentive
D. Sales comparison cost
Answer: D
Rationale: Sales comparison is a separate valuation approach,
not a cost category.
10. Functional obsolescence refers to:
A. Market decline
B. Physical wear
C. Design deficiencies
D. Environmental issues
Answer: C
Rationale: Functional obsolescence results from outdated design
or layout issues.
11. Which is an example of indirect cost?
A. Labor
B. Materials
C. Permits
D. Brickwork
Answer: C
Rationale: Permits and fees are indirect costs, not physical
construction costs.
Exam With Actual Questions & Correct
Answers, Plus Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. Which approach to value is most appropriate for a newly
constructed special-purpose property?
A. Sales comparison approach
B. Cost approach
C. Income approach
D. Gross rent multiplier approach
Answer: B
Rationale: The cost approach is most reliable for special-purpose
or new properties where comparable sales or income data is
limited.
2. In appraisal, highest and best use must be:
A. Legally permissible only
B. Physically possible only
C. Maximally productive and legally permissible
D. Based on current zoning only
Answer: C
Rationale: Highest and best use considers legality, physical
possibility, financial feasibility, and maximum productivity.
,3. Which is an example of external obsolescence?
A. Roof deterioration
B. Outdated floor plan
C. Nearby industrial pollution
D. Poor maintenance
Answer: C
Rationale: External obsolescence is caused by factors outside the
property, such as environmental or economic influences.
4. Depreciation that can be cured is called:
A. External
B. Functional incurable
C. Physical curable
D. Economic
Answer: C
Rationale: Curable physical depreciation can be corrected
through repairs or maintenance.
5. The principle that value is influenced by surrounding properties is:
A. Substitution
B. Contribution
C. Progression and regression
D. Anticipation
Answer: C
Rationale: Progression and regression describe how higher or
lower property values are affected by neighboring properties.
,6. Which statement best describes substitution?
A. Value increases with improvements
B. Buyers pay no more than similar properties cost
C. Value is based on income potential
D. Cost equals value
Answer: B
Rationale: Buyers will not pay more for a property than the cost
of an equally desirable substitute.
7. The income capitalization approach is most appropriate for:
A. Vacant land
B. Income-producing property
C. Historic homes
D. Personal residences only
Answer: B
Rationale: Income properties are best valued using capitalization
of income.
8. Direct capitalization converts:
A. Costs into value
B. Future income into present value using one rate
C. Market data into depreciation
D. Sales price into rent
Answer: B
Rationale: Direct capitalization uses a single rate to convert
income into value.
, 9. Which is NOT a type of cost in the cost approach?
A. Direct costs
B. Indirect costs
C. Entrepreneurial incentive
D. Sales comparison cost
Answer: D
Rationale: Sales comparison is a separate valuation approach,
not a cost category.
10. Functional obsolescence refers to:
A. Market decline
B. Physical wear
C. Design deficiencies
D. Environmental issues
Answer: C
Rationale: Functional obsolescence results from outdated design
or layout issues.
11. Which is an example of indirect cost?
A. Labor
B. Materials
C. Permits
D. Brickwork
Answer: C
Rationale: Permits and fees are indirect costs, not physical
construction costs.
