©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
CGA Exact Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
The "as vacant" highest and best use is for retail and the as improved highest and best use is for
single tenant-office .... What principle underlies the valuation process? - Answer✔Consistent
Use
A property's site is leased for $40,000 per year, which is considered the market rate. The site
represents 35% of the total value. The overall cap rate is 10% and the building cap rate is 11%.
What is the site value? - Answer✔$491,228
A property was purchased for $325, 000 and the buyer expected to hold the property for five
years. The pro forma projections call for a net oper. incoome of $30,000 for Yrs 1 & 2, $35,000
for Yrs 3& 4 and $37,000 for Yr. 5. The property is expected to increase in value to $375k at the
end of the holding period. What is the overall capitalization rate from the investment? -
Answer✔12.5%
In preparing a market value appraisal with retrospective date of value, is the appraiser allowed
to consider any info after the eff. date of value, and why? - Answer✔Yes, the appraiser may use
data subsequent to the eff. date as a confirmation of trends.
Which of the following demand-side economic factors creates value? - Answer✔Desire and
effective purchasing power
*"Always Appears" - If the overall cap rate for the fee simple interest is 10% and the leased fee
cap rate is 8.5%, market net operating income is $20,000 and contract net operating income is
$12,500. What is the implied leasehold cap rate? - Answer✔14.17%
A staff appraiser, employed by a local bank for 5 years, plans to leave the bank to open an
independent appraisal business. Must the appraiser remove all work files for assignments
completed for the bank? - Answer✔No; the appraiser may make arrangements with the bank to
access or retrieve the files.
The subject property is a 5,000 sf single tenant office building that is currently leased for $9.00
per sf with three years remaining on the lease... vacancy credit loss 10% ... owner expenses 25%
of of eff. gross income ... market rent $12 per sf per year. Market overall rates 9.5%. a sale of a
leasehold interest sold for $29,000 with a net leasehold inocme of $12000 per year with 3 yrs
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
remaining. What is the value of the leasehold estate, rounded to the nearest $1000 -
Answer✔$36,000
A property sold for $330, 000 with 10% down, financed at 7.5% interest for 20 years with
monthly payments. The property has a gross annual income of $42k. / Vacancy / collection loss
totals 8% and expenses are $8k per year. What is the equity dividend rate indicated by this
sale? - Answer✔5.85%
The market value of a property is $2,300,000 at stabilized occupancy. The direct building cost is
$1,500,000. The indirect costs are $200,000 and the land costs are $125,000. What is the
indicated entrepreneurial profit? - Answer✔$475,000
What term refers to a division of a total market based on the preferences of buyers and sellers?
- Answer✔Submarket
The subject property has 200 acres on improved pasture, 300 acres of native pasture, and 500
acres of woodland. Comp A has 300 acres of improved pasture, 300 acres of native pasture, and
400 acres of woodland. Comp A sold for $1050 per acre. Assuming native pasture sells for 80%
of improved pasture prices and woodland sells for 40% of improved pasture prices, what is the
per acre value of the subject property? - Answer✔$960 per acre
An apartment complex was purchased 5 yrs ago for $850k, the owner received the following
net cash flows:
1: 50k
2: 52k
3: 48k ("sometimes the number is another 50k")
4: 53k
5: 54k
At the end of yr. 5 the owner sold the property for $975,000. What is the IRR from this
investment? - Answer✔8.51%
An office building is expected to generate the following over its 5 year holding period:
Yr 1: $120,000
Yr 2: $130,000
Yr. 3: $120,000
Yr. 4: $140,000
Yr. 5: $145,000
2
CGA Exact Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
The "as vacant" highest and best use is for retail and the as improved highest and best use is for
single tenant-office .... What principle underlies the valuation process? - Answer✔Consistent
Use
A property's site is leased for $40,000 per year, which is considered the market rate. The site
represents 35% of the total value. The overall cap rate is 10% and the building cap rate is 11%.
What is the site value? - Answer✔$491,228
A property was purchased for $325, 000 and the buyer expected to hold the property for five
years. The pro forma projections call for a net oper. incoome of $30,000 for Yrs 1 & 2, $35,000
for Yrs 3& 4 and $37,000 for Yr. 5. The property is expected to increase in value to $375k at the
end of the holding period. What is the overall capitalization rate from the investment? -
Answer✔12.5%
In preparing a market value appraisal with retrospective date of value, is the appraiser allowed
to consider any info after the eff. date of value, and why? - Answer✔Yes, the appraiser may use
data subsequent to the eff. date as a confirmation of trends.
Which of the following demand-side economic factors creates value? - Answer✔Desire and
effective purchasing power
*"Always Appears" - If the overall cap rate for the fee simple interest is 10% and the leased fee
cap rate is 8.5%, market net operating income is $20,000 and contract net operating income is
$12,500. What is the implied leasehold cap rate? - Answer✔14.17%
A staff appraiser, employed by a local bank for 5 years, plans to leave the bank to open an
independent appraisal business. Must the appraiser remove all work files for assignments
completed for the bank? - Answer✔No; the appraiser may make arrangements with the bank to
access or retrieve the files.
The subject property is a 5,000 sf single tenant office building that is currently leased for $9.00
per sf with three years remaining on the lease... vacancy credit loss 10% ... owner expenses 25%
of of eff. gross income ... market rent $12 per sf per year. Market overall rates 9.5%. a sale of a
leasehold interest sold for $29,000 with a net leasehold inocme of $12000 per year with 3 yrs
1
, ©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
remaining. What is the value of the leasehold estate, rounded to the nearest $1000 -
Answer✔$36,000
A property sold for $330, 000 with 10% down, financed at 7.5% interest for 20 years with
monthly payments. The property has a gross annual income of $42k. / Vacancy / collection loss
totals 8% and expenses are $8k per year. What is the equity dividend rate indicated by this
sale? - Answer✔5.85%
The market value of a property is $2,300,000 at stabilized occupancy. The direct building cost is
$1,500,000. The indirect costs are $200,000 and the land costs are $125,000. What is the
indicated entrepreneurial profit? - Answer✔$475,000
What term refers to a division of a total market based on the preferences of buyers and sellers?
- Answer✔Submarket
The subject property has 200 acres on improved pasture, 300 acres of native pasture, and 500
acres of woodland. Comp A has 300 acres of improved pasture, 300 acres of native pasture, and
400 acres of woodland. Comp A sold for $1050 per acre. Assuming native pasture sells for 80%
of improved pasture prices and woodland sells for 40% of improved pasture prices, what is the
per acre value of the subject property? - Answer✔$960 per acre
An apartment complex was purchased 5 yrs ago for $850k, the owner received the following
net cash flows:
1: 50k
2: 52k
3: 48k ("sometimes the number is another 50k")
4: 53k
5: 54k
At the end of yr. 5 the owner sold the property for $975,000. What is the IRR from this
investment? - Answer✔8.51%
An office building is expected to generate the following over its 5 year holding period:
Yr 1: $120,000
Yr 2: $130,000
Yr. 3: $120,000
Yr. 4: $140,000
Yr. 5: $145,000
2
