CERTIFIED GENERAL APPRAISER EXAM PRACTICE
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. A Certified General Appraiser is authorized to appraise:
A. Only residential 1–4 units
B. Any type of real property, including complex commercial assets
C. Only vacant land
D. Only agricultural land
Answer: B
Rationale: Certified General Appraisers have the broadest scope of appraisal authority.
2. The Certified General credential is required for:
A. Simple single-family homes only
B. Complex commercial and large-scale properties
C. Personal property only
D. Insurance claims only
Answer: B
Rationale: It covers all property types, including complex commercial assignments.
3. The primary purpose of an appraisal is to determine:
A. Loan approval
B. Market value
C. Tax rate
D. Insurance premium
Answer: B
Rationale: Appraisals estimate market value.
4. Market value assumes:
,A. Forced sale
B. Arm’s length transaction
C. Auction only
D. Distressed sale
Answer: B
Rationale: No undue pressure between parties.
5. The three approaches to value are:
A. Cost, Sales Comparison, Income
B. Loan, Tax, Insurance
C. Market, Credit, Cash
D. Land, Building, Mortgage
Answer: A
Rationale: Standard valuation methods.
6. The Income Approach is most important for:
A. Residential homes only
B. Investment and commercial properties
C. Vacant land only
D. Personal property
Answer: B
Rationale: Based on income-producing potential.
7. The Sales Comparison Approach relies on:
A. Comparable property sales
B. Construction cost
C. Rental income
D. Tax records
Answer: A
Rationale: Uses market transactions.
8. The Cost Approach is most useful when:
, A. Income data is strong
B. Sales data is limited or property is unique
C. Property is rented
D. Property is distressed
Answer: B
Rationale: Useful for special-use properties.
9. Depreciation refers to:
A. Increase in value
B. Loss in value
C. Loan balance
D. Tax increase
Answer: B
Rationale: Value loss over time.
10. Physical depreciation is caused by:
A. Market demand
B. Wear and tear
C. Economic growth
D. Location
Answer: B
Rationale: Physical deterioration.
11. Functional obsolescence results from:
A. Design inefficiency
B. Inflation
C. Taxes
D. Loans
Answer: A
Rationale: Poor design or layout.
12. External obsolescence is caused by:
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. A Certified General Appraiser is authorized to appraise:
A. Only residential 1–4 units
B. Any type of real property, including complex commercial assets
C. Only vacant land
D. Only agricultural land
Answer: B
Rationale: Certified General Appraisers have the broadest scope of appraisal authority.
2. The Certified General credential is required for:
A. Simple single-family homes only
B. Complex commercial and large-scale properties
C. Personal property only
D. Insurance claims only
Answer: B
Rationale: It covers all property types, including complex commercial assignments.
3. The primary purpose of an appraisal is to determine:
A. Loan approval
B. Market value
C. Tax rate
D. Insurance premium
Answer: B
Rationale: Appraisals estimate market value.
4. Market value assumes:
,A. Forced sale
B. Arm’s length transaction
C. Auction only
D. Distressed sale
Answer: B
Rationale: No undue pressure between parties.
5. The three approaches to value are:
A. Cost, Sales Comparison, Income
B. Loan, Tax, Insurance
C. Market, Credit, Cash
D. Land, Building, Mortgage
Answer: A
Rationale: Standard valuation methods.
6. The Income Approach is most important for:
A. Residential homes only
B. Investment and commercial properties
C. Vacant land only
D. Personal property
Answer: B
Rationale: Based on income-producing potential.
7. The Sales Comparison Approach relies on:
A. Comparable property sales
B. Construction cost
C. Rental income
D. Tax records
Answer: A
Rationale: Uses market transactions.
8. The Cost Approach is most useful when:
, A. Income data is strong
B. Sales data is limited or property is unique
C. Property is rented
D. Property is distressed
Answer: B
Rationale: Useful for special-use properties.
9. Depreciation refers to:
A. Increase in value
B. Loss in value
C. Loan balance
D. Tax increase
Answer: B
Rationale: Value loss over time.
10. Physical depreciation is caused by:
A. Market demand
B. Wear and tear
C. Economic growth
D. Location
Answer: B
Rationale: Physical deterioration.
11. Functional obsolescence results from:
A. Design inefficiency
B. Inflation
C. Taxes
D. Loans
Answer: A
Rationale: Poor design or layout.
12. External obsolescence is caused by:
