Georgia Certified General Appraiser
Examination Practice Exam Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A Instant
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1. The primary purpose of a real estate appraisal is to:
A. Determine construction costs only
B. Estimate market value based on recognized appraisal methods
C. Calculate property taxes
D. Establish mortgage rates
Answer: B. Estimate market value based on recognized appraisal methods
Rationale: The purpose of an appraisal is to develop an unbiased opinion of
value using accepted appraisal principles and methodologies.
2. Which appraisal approach is generally most applicable for valuing a newly
constructed special-purpose property?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier
,Rationale: The Cost Approach is most reliable when depreciation is minimal and
comparable sales are scarce, as is common with special-purpose properties.
3. Highest and best use analysis requires that a use be:
A. Economically impossible
B. Owner preferred
C. Tax advantageous
D. Legally permissible, physically possible, financially feasible, and maximally
productive
Rationale: These four tests determine whether a property's highest and best use
supports its market value.
4. Which characteristic of value means real estate cannot be moved?
A. Scarcity
B. Situs
C. Immobility
D. Utility
Rationale: Immobility is a fundamental physical characteristic influencing real
estate value.
5. Which appraisal principle explains why excessive improvements may not
increase value proportionately?
A. Balance
B. Conformity
C. Contribution
D. Competition
Rationale: Contribution measures how much an improvement adds to overall
property value rather than its cost.
, 6. A fee simple estate represents:
A. Leasehold interest
B. Life estate
C. Easement rights
D. Complete ownership subject only to governmental powers
Rationale: Fee simple is the broadest ownership interest recognized under law.
7. Which governmental power allows property to be taken for public use with
compensation?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
Rationale: Eminent domain permits government acquisition of private property
for public purposes with just compensation.
8. Market value assumes:
A. Seller is under duress
B. Buyer lacks knowledge
C. Both buyer and seller act prudently and without undue pressure
D. Property is never financed
Rationale: Market value requires informed, willing participants acting in an
open market.
9. The Sales Comparison Approach is based primarily on:
Examination Practice Exam Questions
And Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A Instant
Download Pdf
1. The primary purpose of a real estate appraisal is to:
A. Determine construction costs only
B. Estimate market value based on recognized appraisal methods
C. Calculate property taxes
D. Establish mortgage rates
Answer: B. Estimate market value based on recognized appraisal methods
Rationale: The purpose of an appraisal is to develop an unbiased opinion of
value using accepted appraisal principles and methodologies.
2. Which appraisal approach is generally most applicable for valuing a newly
constructed special-purpose property?
A. Sales Comparison Approach
B. Income Capitalization Approach
C. Cost Approach
D. Gross Rent Multiplier
,Rationale: The Cost Approach is most reliable when depreciation is minimal and
comparable sales are scarce, as is common with special-purpose properties.
3. Highest and best use analysis requires that a use be:
A. Economically impossible
B. Owner preferred
C. Tax advantageous
D. Legally permissible, physically possible, financially feasible, and maximally
productive
Rationale: These four tests determine whether a property's highest and best use
supports its market value.
4. Which characteristic of value means real estate cannot be moved?
A. Scarcity
B. Situs
C. Immobility
D. Utility
Rationale: Immobility is a fundamental physical characteristic influencing real
estate value.
5. Which appraisal principle explains why excessive improvements may not
increase value proportionately?
A. Balance
B. Conformity
C. Contribution
D. Competition
Rationale: Contribution measures how much an improvement adds to overall
property value rather than its cost.
, 6. A fee simple estate represents:
A. Leasehold interest
B. Life estate
C. Easement rights
D. Complete ownership subject only to governmental powers
Rationale: Fee simple is the broadest ownership interest recognized under law.
7. Which governmental power allows property to be taken for public use with
compensation?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
Rationale: Eminent domain permits government acquisition of private property
for public purposes with just compensation.
8. Market value assumes:
A. Seller is under duress
B. Buyer lacks knowledge
C. Both buyer and seller act prudently and without undue pressure
D. Property is never financed
Rationale: Market value requires informed, willing participants acting in an
open market.
9. The Sales Comparison Approach is based primarily on:
