CERTIFIED GENERAL APPRAISER EXAM
Test Questions and Correct Answers
(Verified Answers) plus Rationales
2025/2026 Q&A | Instant Download Pdf
1. The primary purpose of an appraisal is to:
A. Set taxes
B. Estimate value
C. Determine ownership
D. Approve loans
Answer: B
Rationale: An appraisal’s main purpose is to develop an opinion of value.
2. Market value assumes a:
A. Forced sale
B. Cash-only transaction
C. Typical buyer and seller
D. Government price control
Answer: C
Rationale: Market value assumes informed, willing parties.
3. The principle of substitution means:
A. Cost equals value
B. Buyers choose lowest cost similar property
C. Rent controls value
D. Taxes affect value
,Answer: B
Rationale: Buyers will not pay more than comparable alternatives.
4. Highest and best use is defined as:
A. Current use only
B. Most profitable legal use
C. Government use
D. Temporary use
Answer: B
Rationale: It must be legally permissible and financially feasible.
5. Real estate value is most influenced by:
A. Personal preferences only
B. Market forces
C. Construction method only
D. Appraiser opinion only
Answer: B
Rationale: Value is determined by market behavior.
6. Supply and demand affect value by:
A. No effect
B. Always lowering value
C. Balancing market prices
D. Fixing prices
Answer: C
Rationale: Market equilibrium reflects supply and demand.
7. An appraisal report provides:
, A. Guaranteed value
B. Opinion of value
C. Ownership proof
D. Legal title
Answer: B
Rationale: It is an opinion, not a guarantee.
8. An appraiser must be:
A. Realtor
B. Independent and unbiased
C. Loan officer
D. Contractor
Answer: B
Rationale: Independence ensures credibility.
9. USPAP stands for:
A. Uniform Standards of Professional Appraisal Practice
B. United States Property Assessment Plan
C. Uniform Sales Pricing Act Policy
D. Urban Standard Property Act
Answer: A
Rationale: USPAP governs appraisal practice.
10. USPAP is published by:
A. IRS
B. Fannie Mae
C. Appraisal Foundation
D. FHA
Test Questions and Correct Answers
(Verified Answers) plus Rationales
2025/2026 Q&A | Instant Download Pdf
1. The primary purpose of an appraisal is to:
A. Set taxes
B. Estimate value
C. Determine ownership
D. Approve loans
Answer: B
Rationale: An appraisal’s main purpose is to develop an opinion of value.
2. Market value assumes a:
A. Forced sale
B. Cash-only transaction
C. Typical buyer and seller
D. Government price control
Answer: C
Rationale: Market value assumes informed, willing parties.
3. The principle of substitution means:
A. Cost equals value
B. Buyers choose lowest cost similar property
C. Rent controls value
D. Taxes affect value
,Answer: B
Rationale: Buyers will not pay more than comparable alternatives.
4. Highest and best use is defined as:
A. Current use only
B. Most profitable legal use
C. Government use
D. Temporary use
Answer: B
Rationale: It must be legally permissible and financially feasible.
5. Real estate value is most influenced by:
A. Personal preferences only
B. Market forces
C. Construction method only
D. Appraiser opinion only
Answer: B
Rationale: Value is determined by market behavior.
6. Supply and demand affect value by:
A. No effect
B. Always lowering value
C. Balancing market prices
D. Fixing prices
Answer: C
Rationale: Market equilibrium reflects supply and demand.
7. An appraisal report provides:
, A. Guaranteed value
B. Opinion of value
C. Ownership proof
D. Legal title
Answer: B
Rationale: It is an opinion, not a guarantee.
8. An appraiser must be:
A. Realtor
B. Independent and unbiased
C. Loan officer
D. Contractor
Answer: B
Rationale: Independence ensures credibility.
9. USPAP stands for:
A. Uniform Standards of Professional Appraisal Practice
B. United States Property Assessment Plan
C. Uniform Sales Pricing Act Policy
D. Urban Standard Property Act
Answer: A
Rationale: USPAP governs appraisal practice.
10. USPAP is published by:
A. IRS
B. Fannie Mae
C. Appraisal Foundation
D. FHA
