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CG Exam Prep Questions And Answers Graded A+

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Question 1 THE SALE PRICE CONSTANT IS $250,000. THE VARIABLE IS $35 PER SQUARE FOOT. THE SUBJECT IMPROVEMENT IS 3,545 SQUARE FEET. NOI IS $25,000, WHAT IS THE VALUE OF THE SUBJECT? a. $124,075 b. $250,000 c. $274,075 d. $374,075 - ANS Correct Answer: D Simple Linear Regre...

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CG Exam Prep Questions And Answers
Graded A+

Question 1

THE SALE PRICE CONSTANT IS $250,000. THE VARIABLE IS $35 PER SQUARE FOOT.
THE SUBJECT IMPROVEMENT IS 3,545 SQUARE FEET. NOI IS $25,000, WHAT IS THE
VALUE OF THE SUBJECT?

a. $124,075
b. $250,000
c. $274,075
d. $374,075 - ANS Correct Answer: D
Simple Linear Regression

y = a + bx
374,075 = 250,000 + (35 x 3,545)

Question 2

A 15-year old office property recently sold for $1,400,000. The cost to replace the building is
$1,625,000. Land in that office complex sells for $30,000 per acre and this sale had 10 acres.
While the paving and landscaping cost $80,000, they contributed $50,000 to the sale. What is
the annual depreciation rate of the building?

a. 2.3%
b. 1.3%
c. 1.0%
d. 6.3% - ANS Correct Answer: A
30,000 x 10 = 300,000
1,400,000 - 300,000 = 1,100,000
1,100,000 - 50,000 = 1,050,000
1,625,000 - 1,050,000 = 575,000
575,000/1,625,000 = .353846
.353846/15 = .02358

Question 3

,THE PROCESS OF ENFORCING THE RIGHT OF GOVERNMENT TO TAKE PRIVATE
PROPERTY FOR PUBLIC USE IS:
1. EMINENT DOMAIN.
2. CONDEMNATION.
3. POLICE POWER.
4. ESCHEAT. - ANS Correct Answer: B
Eminent domain is the right to take property for the good of the public. Condemnation describes
the process of the taking. Escheat transfers title to a government entity when there is no owner
identified upon death of the original property owner.

Question 4

THE BLUEPRINTS OF A BUILDING INDICATE THE MEASUREMENT OF ONE WALL TO BE
43'9" AND THE INTERSECTING WALL TO BE 29'3". WHAT IS THE INDICATED SQUARE
FOOTAGE OF THE BUILDING?
1. 1286
2. 1280
3. 1247
4. 1320 - ANS Correct Answer: B
43.75 X 29.25 = 1279.6875

Inches must be converted to tenths of a foot for this calculation.

Question 5

The assignment is to value an approved subdivision. The project is expected to be sold out in
three years, selling eight lots in the first year, four lots in the second year, and three lots in the
third year. The lots will sell for $88,500 each the first year, $91,200 the second year, and
$93,900 in the third year. From the sale proceeds, a 6% commission will be paid. The project
will pay $10,000 in taxes in the first year, $4,000 in the second year, $2,000 in the third year. All
other infrastructure costs are complete. Developers require a 25% return on investment. What is
the value of the subdivision today, rounded to the nearest $100?

a. $664,300
b. $875,900
c. $1,258,400
d. $1,355,100 - ANS Correct Answer: B
88,500 x 8 = 708,000
708,000 x .06 = 42,480
708,000 - 42,480 - 10,000 = 655,520

91,200 x 4 = 364,800
364,800 x .06 = 21,888
364,800 - 21,888 - 4,000 = 338,912

,93,900 x 3 = 281,700
281,700 x .06 = 16.902
281,700 - 16,902 - 2,000 = 262,798

25i
655,520 g cfj
338,912 g cfj
262,798 g cfj
f npv = 875,872

Question 6

THE SUBJECT IS 60,000 SQUARE FEET. COMPARABLE 1 SOLD ONE YEAR AGO FOR
$2.92 PER SQUARE FOOT. COMPARABLE 2 SOLD ONE YEAR AGO FOR $3 PER SQUARE
FOOT. COMPARABLE 3 IS A CURRENT SALE FOR $3.01 PER SQUARE FOOT. WHAT IS
THE VALUE OF THE SUBJECT?
1. $175,200
2. $178,600
3. $180,600
4. $181,000 - ANS Correct Answer: B
3.01 E+
3 E+
2.92 E+

g x = 2.9777 x 60,000 = 178,600

Question 7

A certified residential appraiser was initially licensed as an appraiser trainee on January 30,
2008 and earned the residential certification April 15, 2010. An assignment was offered on May
3, 2010 to appraise a single family home under FNMA guidelines with an effective date of March
15, 2006. The report will be dated May 8, 2010. Assuming the appraiser is competent, is it
legally permissable to accept this assignment?
1. Yes, as long as the residential certification is valid as of the date of the report.
2. Yes, as long as the residential certification is valid as of the date the assignment is accepted.
3. No, the appraiser would need to possess a valid appraisal credential on the effective
appraisal date.
4. No, the appraiser would have to possess a certification as a residential appraiser as of the
appraisal's effective date. - ANS Correct Answer: A

Question 8

Which of the following can not impact value as an environmental influence?

, a. View
b. Location
c. Climate
d. Crime - ANS Correct Answer: D
Criminal activity is a social value influence.

Question 9

The CPI was 100 in 1994 and 121.6 in 2002. What is the semi annual change in market
conditions?

a. 7.25%
b. 5.25%
c. 2.7%
d. 1.35% - ANS Correct Answer: D
121.6-100=21.6
21.6/100=.216
.216/8=.027
.027/2=.0135

Question 10

Compensation in a condemnation proceeding is determined by the:

a. Condemning authority
b. Property owner
c. Certified appraiser
d. Applicable court - ANS Correct Answer: D
Condemnation is a judicial proceeding that will use information from the three other answer
choices in selecting an award.

Question 11

The subject has 300 acres of improved pasture, 200 acres of natural pasture, and 500 acres of
wooded land. The only comparable in the market is very similar and sold for $1,050 per acre.
The comparable has 200 acres of improved pasture, 400 acres of natural pasture, and 400
acres of wooded land. If natural pasture sells for 80 percent of improved pasture, and wooded
land sells for 30 percent of improved pasture, what is the value of the subject?
1. $1,550/acre
2. $1,137/acre
3. $1,102/acre
4. $1,002/acre - ANS Correct Answer: C
Comparable

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Exam (elaborations)

CG Exam Prep Questions And Answers Graded A+

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