10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The AI-GRS exam has 100 questions and runs 7 hours.
These 10 free AI-GRS questions are organized by exam domain, so you can see how each part of the AI-GRS Membership Designation blueprint is tested. Reveal the answer and explanation under each question.
A retail property has eight years remaining on an enforceable lease at below-market rent. The tenant is financially sound, and neither party can terminate early. The assignment is to estimate the market value of the leased fee interest. Which income treatment matches the interest being appraised?
Correct answer: B - Recognize contract rent during the remaining term and market rent at a supported lease rollover.
On May 15, an appraiser observes that an apartment project is only 30% complete. For a feasibility decision, the client requests its value as of May 15 as though all planned improvements were already complete. The assignment is not asking for a value on the expected future completion date. How should the appraiser characterize the requested premise?
Correct answer: D - A hypothetical condition that the improvements were complete on the May 15 effective date.
Over one year, a warehouse submarket adds 500,000 square feet of completed inventory. Occupied space increases by 200,000 square feet, no buildings leave the inventory, and the vacancy rate rises. An analyst describes this as negative net absorption and recommends reducing projected rents on that basis alone. What does the evidence actually establish?
Correct answer: A - Net absorption was positive; new supply outpaced the growth in occupied space.
A warehouse property supports a continued-use value of $2.60 million. As though the site were vacant, apartment development would support a land value of $2.90 million, compared with $2.10 million for warehouse development. Both uses pass the legal, physical, and financial feasibility tests. After all demolition, transition, and timing effects, replacing the existing warehouse with apartments produces a net present indication of $2.35 million for the current property. All indications address the same ownership interest and effective date. Identify the supported highest and best use under the two premises.
Correct answer: C - As though vacant: apartments. As improved: warehouse.
An appraiser responds to a review finding: "The tax omission and the higher cap rate cancel, so the analysis does not need to change." The property taxes are recurring, the cap-rate premium is unsupported, and the reviewer confirms that correcting both leaves the value indication unchanged. The defensible response is to:
Correct answer: D - Require both defects to be addressed; their offset does not establish credible analysis.
For a stabilized apartment property, annual effective gross income is $720,000 and property operating expenses are $240,000, excluding replacement reserves. The annual replacement reserve is $30,000. Annual mortgage principal and interest total $150,000, and accounting depreciation is $60,000. A supported overall capitalization rate of 7.50% was extracted from comparable sales using income after replacement reserves. The direct-capitalization indication of property value is:
Correct answer: C - $6,000,000
A USPAP appraisal review calls for an opinion on the credibility of an office valuation, without a separate value opinion. The reviewer independently verifies the leases and market data and has reliable, current documentation of property condition. Those sources are sufficient for the intended use, and no applicable requirement calls for a personal inspection. The reviewer has not visited the property. Which course is justified?
Correct answer: A - Complete the review and accurately disclose the research performed and the absence of a personal inspection.
An irrigated farm includes perpetual, transferable water rights. The nearest comparable farm sale has similar soils and current crop yields, but its irrigation depends on a water lease expiring in two years with no assured renewal. A farther sale in the same competitive agricultural market includes perpetual water rights. Prices and transaction terms are verified. The appraiser uses the nearest sale without adjustment because both farms are currently irrigated. What is the substantive review issue?
Correct answer: B - Water-right duration and transferability must be addressed before the ownership benefits can be compared.
A lender accepts a property value of $6,000,000 and annual net operating income of $400,000. Its loan policy permits a maximum loan-to-value ratio of 75% and requires a minimum debt-service coverage ratio of 1.25. The proposed financing has an annual mortgage constant of 8.00%. There are no other loan-sizing constraints. Which maximum loan and controlling constraint follow from these terms?
Correct answer: D - $4,000,000, controlled by the minimum debt-service coverage ratio.
A commercial appraisal prepared under USPAP states the final market rent and capitalization rate but provides no explanation of the material adjustments supporting either. Its stated intended use requires the client to evaluate those assumptions. With authorized access to the workfile, the reviewer finds adequate market support and sound calculations. The report itself does not give its intended users enough information to understand that reasoning. What needs to change?
Correct answer: B - The report needs sufficient explanation; sound analysis in the workfile does not cure deficient communication.
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