Ohio Certified General Appraiser Exam Prep 2026- 200
Practice Questions & Detailed Answers | Verified Answers
with Rationales | Instant PDF Download | 2025/2026 Q&A
1. The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Correct Answer: B
Rationale: Utility refers to the ability of a property to satisfy a human need, which is a fundamental
characteristic of value. Without utility, a property has no value regardless of its cost or scarcity.
2. An appraiser using the cost approach would most likely use which method to estimate depreciation?
A) Market extraction
B) Agelife method
C) Sales comparison
D) Income capitalization
Correct Answer: B
Rationale: The agelife method estimates depreciation based on the effective age of the property relative
to its total economic life. This is a common method used in the cost approach.
,3. Highest and best use analysis is required to:
A) Determine the tax assessment
B) Identify the most profitable use of the property
C) Estimate replacement cost
D) Calculate mortgage value
Correct Answer: B
Rationale: Highest and best use ensures the property is valued according to its most profitable legally
permissible, physically possible, and financially feasible use.
4. Which of the following is a principle of value?
A) Diminishing utility
B) Substitution
C) Inflation
D) Risk
Correct Answer: B
Rationale: The principle of substitution states that a buyer will pay no more for a property than the cost
of acquiring a similar substitute property with the same utility.
5. In a sales comparison approach, adjustments are made:
,A) To the sale price of the subject property
B) To the sale price of the comparable property
C) To both the subject and comparable properties
D) Only to the listing price
Correct Answer: B
Rationale: Adjustments are made to the comparable properties' sale prices to account for differences
between the comparables and the subject property. The goal is to derive an indicated value for the
subject.
6. The capitalization rate is used in which appraisal method?
A) Cost approach
B) Sales comparison approach
C) Income approach
D) Extraction approach
Correct Answer: C
Rationale: The capitalization rate is a key component of the income approach. It is used to convert net
operating income (NOI) into an indication of value.
7. A property's effective gross income is $480,000 and operating expenses are $180,000. If the
capitalization rate is 8%, what is the indicated value?
A) $2,400,000
B) $3,000,000
, C) $3,750,000
D) $6,000,000
Correct Answer: C
Rationale: Net Operating Income (NOI) = Effective Gross Income Operating Expenses = $480,000
$180,000 = $300,000. Value = NOI ÷ Cap Rate = $300,000 ÷ 0.08 = $3,750,000.
8. Which approach to value is generally MOST reliable for a newly constructed specialpurpose building?
A) Income approach
B) Cost approach
C) Sales comparison approach
D) Gross rent multiplier
Correct Answer: B
Rationale: The cost approach is most applicable where comparable sales are limited, such as for newly
constructed or specialpurpose properties.
9. 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
Practice Questions & Detailed Answers | Verified Answers
with Rationales | Instant PDF Download | 2025/2026 Q&A
1. The most important characteristic of value is:
A) Cost
B) Utility
C) Scarcity
D) Transferability
Correct Answer: B
Rationale: Utility refers to the ability of a property to satisfy a human need, which is a fundamental
characteristic of value. Without utility, a property has no value regardless of its cost or scarcity.
2. An appraiser using the cost approach would most likely use which method to estimate depreciation?
A) Market extraction
B) Agelife method
C) Sales comparison
D) Income capitalization
Correct Answer: B
Rationale: The agelife method estimates depreciation based on the effective age of the property relative
to its total economic life. This is a common method used in the cost approach.
,3. Highest and best use analysis is required to:
A) Determine the tax assessment
B) Identify the most profitable use of the property
C) Estimate replacement cost
D) Calculate mortgage value
Correct Answer: B
Rationale: Highest and best use ensures the property is valued according to its most profitable legally
permissible, physically possible, and financially feasible use.
4. Which of the following is a principle of value?
A) Diminishing utility
B) Substitution
C) Inflation
D) Risk
Correct Answer: B
Rationale: The principle of substitution states that a buyer will pay no more for a property than the cost
of acquiring a similar substitute property with the same utility.
5. In a sales comparison approach, adjustments are made:
,A) To the sale price of the subject property
B) To the sale price of the comparable property
C) To both the subject and comparable properties
D) Only to the listing price
Correct Answer: B
Rationale: Adjustments are made to the comparable properties' sale prices to account for differences
between the comparables and the subject property. The goal is to derive an indicated value for the
subject.
6. The capitalization rate is used in which appraisal method?
A) Cost approach
B) Sales comparison approach
C) Income approach
D) Extraction approach
Correct Answer: C
Rationale: The capitalization rate is a key component of the income approach. It is used to convert net
operating income (NOI) into an indication of value.
7. A property's effective gross income is $480,000 and operating expenses are $180,000. If the
capitalization rate is 8%, what is the indicated value?
A) $2,400,000
B) $3,000,000
, C) $3,750,000
D) $6,000,000
Correct Answer: C
Rationale: Net Operating Income (NOI) = Effective Gross Income Operating Expenses = $480,000
$180,000 = $300,000. Value = NOI ÷ Cap Rate = $300,000 ÷ 0.08 = $3,750,000.
8. Which approach to value is generally MOST reliable for a newly constructed specialpurpose building?
A) Income approach
B) Cost approach
C) Sales comparison approach
D) Gross rent multiplier
Correct Answer: B
Rationale: The cost approach is most applicable where comparable sales are limited, such as for newly
constructed or specialpurpose properties.
9. 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
