Maryland Property Valuation
Practice Questions & Answers (2026)
Property valuation questions on the Maryland exam test the three approaches to value (sales comparison, cost, and income), how appraisals work, and what affects market value. The Maryland Real Estate Commission tests when each approach is most appropriate, how adjustments are made in the sales comparison approach, and what factors an appraiser considers vs. ignores. Maryland candidates often struggle with income approach calculations — particularly gross rent multiplier (GRM) and net operating income (NOI) — and with the cost approach depreciation calculations. These are high-difficulty math and concept questions where careful study of the explanations pays off significantly on exam day.
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Maryland Property Valuation — Practice Questions & Answers
131 questions on Property Valuation from the Maryland real estate question bank. First 10 are free — sign up to unlock all 131.
Q1. In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:
Explanation
A CMA analyzes recently sold properties (what buyers paid), currently active listings (competition), and expired listings (prices the market rejected) to estimate a property's market value.
Q2. The principle of 'conformity' in real estate valuation states that:
Explanation
The principle of conformity states that properties achieve maximum value when they are compatible with and conform to the general character and land use patterns of the surrounding neighborhood.
Q3. Which professional is required to perform an appraisal for a federally regulated mortgage transaction in Maryland?
Explanation
Federally regulated mortgage transactions in Maryland must use a state-certified or state-licensed appraiser, as required by FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act).
Q4. When an appraiser uses the income approach to value a Maryland apartment building with a NOI of $90,000 and a cap rate of 7.5%, what is the estimated value?
Explanation
Value = NOI ÷ Cap rate = $90,000 ÷ 0.075 = $1,200,000.
Q5. Which appraisal approach estimates value by comparing the subject property to recently sold similar properties?
Explanation
The sales comparison approach (market data approach) estimates value by analyzing recent sales of comparable properties and adjusting for differences.
Q6. In an appraisal, when a comparable property sold is superior to the subject property in a specific feature, the appraiser will:
Explanation
If a comp is superior to the subject, the appraiser subtracts from the comp's sale price to bring it down to the subject's value level.
Q7. The cost approach to value calculates:
Explanation
The cost approach = land value + cost to reproduce/replace improvements − accrued depreciation.
Q8. A property has a gross monthly rent of $2,400 and sold for $288,000. What is the gross rent multiplier (GRM)?
Explanation
$288,000 ÷ $2,400 = 120 GRM.
Q9. Which type of depreciation is caused by poor floor plan design and is generally considered incurable?
Explanation
Functional obsolescence due to poor floor plan (e.g., outdated layout) is generally incurable because it cannot be cost-effectively corrected.
Q10. A property generates a net operating income (NOI) of $45,000. The market capitalization rate is 6%. What is the estimated value?
Explanation
Value = NOI ÷ Cap Rate = $45,000 ÷ 0.06 = $750,000.
Q11. Which principle of value states that the value of a property is affected by the values of surrounding properties?
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