Ohio Practice TestProperty Valuation

Ohio Property Valuation
Practice Questions & Answers (2026)

Property valuation questions on the Ohio exam test the three approaches to value (sales comparison, cost, and income), how appraisals work, and what affects market value. The Ohio Division of Real Estate & Professional Licensing tests when each approach is most appropriate, how adjustments are made in the sales comparison approach, and what factors an appraiser considers vs. ignores. Ohio 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.

Practice Questions

Ohio Property Valuation — Practice Questions & Answers

141 questions on Property Valuation from the Ohio real estate question bank. First 10 are free — sign up to unlock all 141.

Q1. In Ohio, the county auditor's assessed value is used to determine:

A.The property's market value for sale purposes
B.The tax base for calculating property taxes
C.The value for homeowner's insurance
D.The maximum mortgage a lender will make

Explanation

The county auditor's assessed value (35% of appraised market value) is the tax base used to calculate the owner's property tax obligation. It is not used to determine market value for sale or insurance purposes.

Q2. Which principle states that the value of an improvement is only worth the amount it adds to the total property value?

A.Principle of substitution
B.Principle of contribution
C.Principle of conformity
D.Principle of progression

Explanation

The principle of contribution states that the value of any component of a property is measured by how much it contributes to the total property value, not by the cost to install it.

Q3. An Ohio appraiser is using the cost approach. The land value is $60,000 and the depreciated value of improvements is $175,000. What is the estimated property value?

A.$175,000
B.$215,000
C.$235,000
D.$250,000

Explanation

In the cost approach, Property Value = Land Value + Depreciated Value of Improvements = $60,000 + $175,000 = $235,000.

Q4. A property's annual NOI is $42,000 and similar properties are selling at a 7% cap rate. What is the estimated value?

A.$500,000
B.$550,000
C.$600,000
D.$650,000

Explanation

Value = NOI / Cap Rate = $42,000 / 0.07 = $600,000.

Q5. Which appraisal approach is considered MOST reliable for single-family homes in Ohio's active residential markets?

A.Income approach
B.Cost approach
C.Sales comparison approach
D.Replacement value approach

Explanation

The sales comparison approach (market data approach) is generally considered the most reliable method for appraising single-family residences in active markets with ample comparable sales.

Q6. In Ohio, CAUV stands for Current Agricultural Use Valuation. Under CAUV, farmland is taxed based on:

A.Its full market value if developed
B.Its value based on agricultural productivity and income, not development potential
C.A flat rate per acre set by the state legislature
D.The original purchase price paid by the owner

Explanation

Ohio's CAUV program taxes qualifying farmland on its agricultural use value rather than its market value for development. This reduces property tax burdens on Ohio farmers.

Q7. The principle of 'regression' in real estate valuation states that:

A.A higher-value property raises the value of nearby lower-value properties
B.A lower-value property tends to pull down the value of a higher-value property in the same neighborhood
C.Property values always decline over time
D.Improvements never add value equal to their cost

Explanation

The principle of regression states that a superior property surrounded by inferior properties will see its value negatively affected. The opposite principle—progression—states the reverse.

Q8. An Ohio appraiser makes a '+$5,000' adjustment to a comparable sale. This means the comparable:

A.Is superior to the subject property in that feature by $5,000
B.Is inferior to the subject property in that feature, requiring an upward adjustment to the comparable's price
C.Sold for $5,000 more than the subject property
D.Has $5,000 more value than the subject property

Explanation

When a comparable is inferior to the subject in some feature, the appraiser adds value to the comparable's price to equalize them. The logic: if the comparable had this feature, it would have sold for more.

Q9. In Ohio, which professional is licensed to perform appraisals for federally related transactions over $400,000?

A.A real estate broker
B.A certified residential appraiser
C.A certified general appraiser
D.A licensed appraiser trainee

Explanation

Federally related transactions over $400,000 (non-residential) or complex residential properties require a Certified General Appraiser. Certified Residential Appraisers handle most residential transactions.

Q10. Which type of depreciation in the cost approach is considered incurable because it is caused by factors external to the property?

A.Physical deterioration — curable
B.Functional obsolescence — curable
C.External (economic) obsolescence
D.Physical deterioration — incurable

Explanation

External or economic obsolescence results from factors outside the property, such as neighborhood decline, proximity to a highway, or market conditions. It is always considered incurable since the owner cannot fix external factors.

Q11. An Ohio home sold for $340,000. The listing broker claims a 6% commission. What is the total commission dollar amount?

A.$17,000
B.$20,400
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