CERTIFIED GENERAL APPRAISER PRACTICE
EXAMINATION QUESTIONS WITH CORRECT
ANSWERS AND RATIONALES
1. What is the primary purpose of a real property appraisal?
A. To establish the property's listing price
B. To develop an opinion of value for a specified purpose
C. To guarantee the property's future selling price
D. To determine the property's replacement cost only
Correct Answer: B
Rationale: An appraisal develops a supported opinion of value
for a defined intended use, client, and effective date. It does
not guarantee a sale price or serve solely as a cost estimate.
,2. Which of the following best defines market value in a
typical appraisal context?
A. The highest price a seller hopes to receive
B. The assessed value used for property taxation
C. The most probable price a property should bring in a
competitive and open market under specified conditions
D. The price paid by a particular investor regardless of
circumstances
Correct Answer: C
Rationale: Market value is generally based on a transaction
between typically motivated, informed parties, acting
prudently and without undue pressure, under defined market
conditions.
3. What is the effective date of an appraisal?
A. The date the appraiser signs the report
,B. The date the client orders the appraisal
C. The date to which the appraiser's analyses, opinions, and
conclusions apply
D. The date the property was purchased
Correct Answer: C
Rationale: The effective date establishes the point in time for
which the value opinion is developed. It may be current,
retrospective, or prospective.
4. Which term identifies the party or parties intended to rely
on an appraisal report?
A. Intended users
B. Competent parties
C. Market participants
D. Exposure participants
, Correct Answer: A
Rationale: Intended users are those identified by the
appraiser, based on communication with the client, as
authorized to use and rely on the appraisal.
5. The subject property in an appraisal is best described as:
A. The property with the highest sale price
B. The property being appraised
C. The most comparable property
D. The property selected for financing
Correct Answer: B
Rationale: The subject is the real property that is the focus
of the appraisal assignment.
6. What is meant by the term “scope of work”?
EXAMINATION QUESTIONS WITH CORRECT
ANSWERS AND RATIONALES
1. What is the primary purpose of a real property appraisal?
A. To establish the property's listing price
B. To develop an opinion of value for a specified purpose
C. To guarantee the property's future selling price
D. To determine the property's replacement cost only
Correct Answer: B
Rationale: An appraisal develops a supported opinion of value
for a defined intended use, client, and effective date. It does
not guarantee a sale price or serve solely as a cost estimate.
,2. Which of the following best defines market value in a
typical appraisal context?
A. The highest price a seller hopes to receive
B. The assessed value used for property taxation
C. The most probable price a property should bring in a
competitive and open market under specified conditions
D. The price paid by a particular investor regardless of
circumstances
Correct Answer: C
Rationale: Market value is generally based on a transaction
between typically motivated, informed parties, acting
prudently and without undue pressure, under defined market
conditions.
3. What is the effective date of an appraisal?
A. The date the appraiser signs the report
,B. The date the client orders the appraisal
C. The date to which the appraiser's analyses, opinions, and
conclusions apply
D. The date the property was purchased
Correct Answer: C
Rationale: The effective date establishes the point in time for
which the value opinion is developed. It may be current,
retrospective, or prospective.
4. Which term identifies the party or parties intended to rely
on an appraisal report?
A. Intended users
B. Competent parties
C. Market participants
D. Exposure participants
, Correct Answer: A
Rationale: Intended users are those identified by the
appraiser, based on communication with the client, as
authorized to use and rely on the appraisal.
5. The subject property in an appraisal is best described as:
A. The property with the highest sale price
B. The property being appraised
C. The most comparable property
D. The property selected for financing
Correct Answer: B
Rationale: The subject is the real property that is the focus
of the appraisal assignment.
6. What is meant by the term “scope of work”?
