MARYLAND CERTIFIED GENERAL APPRAISER EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026 |INSTANT DOWNLOAD PDF
1. What is the primary purpose of the Uniform Standards of
Professional Appraisal Practice (USPAP)?
A. To set real estate tax rates
B. To regulate mortgage lending practices
C. To establish ethical and performance standards for
appraisers
D. To determine property zoning classifications
Rationale: USPAP provides national ethical and performance
standards for appraisal practice.
Correct Answer: C
2. Which approach to value is MOST appropriate for a newly
constructed commercial building with no income history?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier Approach
Rationale: The cost approach is best for new properties where
depreciation and cost replacement are measurable.
Correct Answer: C
,3. In appraisal terminology, "highest and best use" refers to:
A. The most expensive use of a property
B. The legally permissible and financially feasible use that
produces maximum value
C. The current use of the property
D. The use that generates the most rental income only
Rationale: Highest and best use must be legal, physically
possible, financially feasible, and maximally productive.
Correct Answer: B
4. Which is NOT one of the three traditional approaches to
value?
A. Cost Approach
B. Income Approach
C. Sales Comparison Approach
D. Market Segmentation Approach
Rationale: Market segmentation is a marketing concept, not a
valuation approach.
Correct Answer: D
5. Depreciation in appraisal refers to:
A. Increase in property value over time
B. Loss in value due to any cause
,C. Tax deduction on property income
D. Replacement cost of a structure
Rationale: Depreciation is a loss in value from physical
deterioration, functional or external factors.
Correct Answer: B
6. Which type of depreciation is incurable?
A. Physical deterioration
B. Functional obsolescence
C. External obsolescence
D. Physical curable depreciation
Rationale: External obsolescence is caused by outside factors
and cannot be fixed by the owner.
Correct Answer: C
7. The principle of substitution states that:
A. Buyers pay more for unique properties
B. A property’s value is influenced by cost of similar alternatives
C. Income determines all property values
D. Government controls property prices
Rationale: Buyers will not pay more for a property than the
cost of a comparable substitute.
Correct Answer: B
, 8. Which appraisal report type is MOST detailed?
A. Restricted Appraisal Report
B. Oral Report
C. Summary Appraisal Report
D. Self-contained Appraisal Report
Rationale: Self-contained reports include full detail, analysis,
and supporting data.
Correct Answer: D
9. What does "market value" assume?
A. Forced sale conditions
B. Buyer and seller are unrelated and acting in their own
interest
C. Seller must sell quickly
D. Buyer has monopoly power
Rationale: Market value assumes arm’s length transaction with
no pressure.
Correct Answer: B
10. Which factor is MOST important in the Sales Comparison
Approach?
A. Age of the property
B. Adjusted sale prices of comparable properties
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2026 |INSTANT DOWNLOAD PDF
1. What is the primary purpose of the Uniform Standards of
Professional Appraisal Practice (USPAP)?
A. To set real estate tax rates
B. To regulate mortgage lending practices
C. To establish ethical and performance standards for
appraisers
D. To determine property zoning classifications
Rationale: USPAP provides national ethical and performance
standards for appraisal practice.
Correct Answer: C
2. Which approach to value is MOST appropriate for a newly
constructed commercial building with no income history?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier Approach
Rationale: The cost approach is best for new properties where
depreciation and cost replacement are measurable.
Correct Answer: C
,3. In appraisal terminology, "highest and best use" refers to:
A. The most expensive use of a property
B. The legally permissible and financially feasible use that
produces maximum value
C. The current use of the property
D. The use that generates the most rental income only
Rationale: Highest and best use must be legal, physically
possible, financially feasible, and maximally productive.
Correct Answer: B
4. Which is NOT one of the three traditional approaches to
value?
A. Cost Approach
B. Income Approach
C. Sales Comparison Approach
D. Market Segmentation Approach
Rationale: Market segmentation is a marketing concept, not a
valuation approach.
Correct Answer: D
5. Depreciation in appraisal refers to:
A. Increase in property value over time
B. Loss in value due to any cause
,C. Tax deduction on property income
D. Replacement cost of a structure
Rationale: Depreciation is a loss in value from physical
deterioration, functional or external factors.
Correct Answer: B
6. Which type of depreciation is incurable?
A. Physical deterioration
B. Functional obsolescence
C. External obsolescence
D. Physical curable depreciation
Rationale: External obsolescence is caused by outside factors
and cannot be fixed by the owner.
Correct Answer: C
7. The principle of substitution states that:
A. Buyers pay more for unique properties
B. A property’s value is influenced by cost of similar alternatives
C. Income determines all property values
D. Government controls property prices
Rationale: Buyers will not pay more for a property than the
cost of a comparable substitute.
Correct Answer: B
, 8. Which appraisal report type is MOST detailed?
A. Restricted Appraisal Report
B. Oral Report
C. Summary Appraisal Report
D. Self-contained Appraisal Report
Rationale: Self-contained reports include full detail, analysis,
and supporting data.
Correct Answer: D
9. What does "market value" assume?
A. Forced sale conditions
B. Buyer and seller are unrelated and acting in their own
interest
C. Seller must sell quickly
D. Buyer has monopoly power
Rationale: Market value assumes arm’s length transaction with
no pressure.
Correct Answer: B
10. Which factor is MOST important in the Sales Comparison
Approach?
A. Age of the property
B. Adjusted sale prices of comparable properties
