20 Commercial Real Estate Appraiser Interview Questions (With Example Answers)
It's important to prepare for an interview in order to improve your chances of getting the job. Researching questions beforehand can help you give better answers during the interview. Most interviews will include questions about your personality, qualifications, experience and how well you would fit the job. In this article, we review examples of various commercial real estate appraiser interview questions and sample answers to some of the most common questions.
Common Commercial Real Estate Appraiser Interview Questions
- What experience do you have in commercial real estate appraisal?
- What is your education and/or professional designation in appraising?
- How many years have you been appraising commercial real estate?
- In your opinion, what are the three most important factors in valuing commercial real estate?
- What do you think is the most difficult aspect of appraising commercial real estate?
- What type of commercial properties do you specialize in appraising?
- How do you go about researching comparable sales for a commercial property?
- What do you think is the most important thing to know in order to be a successful appraiser?
- What do you think has been the most challenging appraisal assignment that you have completed?
- Can you provide an example of a complex valuation issue that you had to deal with on an assignment?
- What sources of information do you use most often when appraising commercial properties?
- How do you determine the appropriate method or methods to use in valuing a particular property?
- Can you provide an example of a situation where you had to use more than one method of valuation in order to come up with an accurate value for a property?
- How do you deal with unusual or unique properties that don't have any direct comparables?
- What do you think is the most important thing to remember when appraising commercial real estate?
- What are some of the common mistakes that appraisers make when valuing commercial properties?
- How do you avoid making mistakes when appraising commercial real estate?
- What do you think is the biggest challenge facing appraisers today?
- What technology do you use in your work as an appraiser?
- What do you think the future of appraisal is, and how will it impact your work?
What experience do you have in commercial real estate appraisal?
The interviewer is trying to gauge the appraiser's experience level in commercial real estate appraisal. This is important because it will help the interviewer determine if the appraiser is qualified to provide an accurate appraisal on a commercial property.
Example: “I have been appraising commercial real estate for over 20 years. I have appraised all types of commercial properties, from small retail storefronts to large office buildings and industrial complexes. I am familiar with the various methods of appraisal, and have experience using both the cost and market approaches. I am also experienced in analyzing market trends and performing feasibility studies.”
What is your education and/or professional designation in appraising?
The interviewer is asking for the appraiser's credentials to ensure that the appraiser is qualified to provide an accurate estimate of the value of the commercial property. The appraiser's education and professional designation show that the appraiser has the knowledge and experience necessary to properly assess the value of the property.
Example: “I am a Certified General Appraiser in the state of Florida and hold the MAI designation from the Appraisal Institute. I have a bachelor's degree in business administration with a concentration in real estate from the University of Central Florida.”
How many years have you been appraising commercial real estate?
An interviewer would ask this question to determine the amount of experience the appraiser has in the field. It is important to know how much experience an appraiser has because it can affect the accuracy of their appraisal.
Example: “I have been appraising commercial real estate for over 10 years.”
In your opinion, what are the three most important factors in valuing commercial real estate?
The interviewer is asking the appraiser to share their professional opinion on what they believe are the three most important factors in valuing commercial real estate. This question is important because it allows the interviewer to gauge the appraiser's level of experience and knowledge in the field, as well as their ability to think critically about the valuation process. By understanding the appraiser's thought process, the interviewer can get a better sense of whether or not the appraiser would be a good fit for the company.
Example: “1. The three most important factors in valuing commercial real estate are location, condition, and amenities.
2. Location is important because it determines the property's exposure to potential customers, clients, or tenants. It also affects the property's accessibility and proximity to competition.
3. Condition is important because it affects the property's ability to generate income and its long-term viability.
4. Amenities are important because they can attract and retain tenants, customers, or clients. They can also increase the property's value and improve its long-term prospects.”
What do you think is the most difficult aspect of appraising commercial real estate?
The most difficult aspect of appraising commercial real estate is the valuation process. There are many factors to consider when appraising a commercial property, and appraisers must use their knowledge and experience to arrive at a fair and accurate value for the property. The interviewer is asking this question to gauge the appraiser's level of experience and knowledge, and to see how they handle difficult situations.
Example: “The most difficult aspect of appraising commercial real estate is the fact that there are so many variables to consider. The appraiser must take into account the location, condition of the property, and the current market conditions, as well as the potential for future growth. This can be a challenge, especially in markets where there is little data available.”
What type of commercial properties do you specialize in appraising?
An interviewer would ask "What type of commercial properties do you specialize in appraising?" to a/an Commercial Real Estate Appraiser in order to gauge what type of experience the appraiser has. It is important to know what type of commercial properties an appraiser specializes in because it gives insight into how much experience they have and what type of knowledge they have. For example, if an appraiser specializes in appraising office buildings, they likely have more experience than someone who appraises retail properties.
Example: “I specialize in appraising all types of commercial properties, including office buildings, retail centers, industrial warehouses, and more. I have experience appraising a wide variety of property types, so I am familiar with the unique challenges that each type of property presents.”
How do you go about researching comparable sales for a commercial property?
The interviewer is asking how the appraiser would research comparable sales for a commercial property in order to determine the value of the property. This is important because the appraiser needs to have accurate information in order to provide a accurate estimate of the property's value.
Example: “There are a few different ways to research comparable sales for a commercial property. One way is to look at public records of sales in the area. Another way is to talk to real estate agents and brokers who have knowledge of recent sales in the area. Finally, you can also look at online databases of commercial real estate sales.”
What do you think is the most important thing to know in order to be a successful appraiser?
The interviewer is asking this question to gauge the Commercial Real Estate Appraiser's understanding of the necessary skills and knowledge for success in the field. It is important for appraisers to be knowledgeable in a wide range of topics, including real estate law, market analysis, and financial analysis. In addition, appraisers must be able to effectively communicate their findings to clients.
Example: “The most important thing to know in order to be a successful appraiser is to have a strong understanding of the market. This includes knowing what properties are worth, what trends are happening, and what buyers are looking for. Additionally, appraisers must be able to communicate their findings clearly and effectively.”
What do you think has been the most challenging appraisal assignment that you have completed?
The interviewer is trying to gauge the appraiser's experience and expertise. It is important to know whether the appraiser has experience with the type of property being appraised. The interviewer is also trying to gauge the appraiser's ability to handle challenging assignments.
Example: “The most challenging appraisal assignment I have completed was for a large commercial office building. The property was located in a major city and had been vacant for several years. The challenge was in determining the highest and best use of the property, as well as estimating the market value.”
Can you provide an example of a complex valuation issue that you had to deal with on an assignment?
An interviewer might ask this question to a commercial real estate appraiser to get a sense of their experience with complex valuation issues. This is important because it can give the interviewer a sense of the appraiser's ability to handle difficult situations and problem-solve.
Example: “I was once asked to appraise a large commercial property that had been divided into multiple smaller units. The owner wanted to know the value of the property as a whole, as well as the value of each individual unit. This required me to carefully consider the market value of each unit, as well as the potential income that could be generated from renting or selling the units. In the end, I was able to provide the owner with a comprehensive report that detailed the value of the property and each unit.”
What sources of information do you use most often when appraising commercial properties?
An interviewer would ask this question to get an idea of how the appraiser goes about gathering data when appraising a commercial property. This is important because the data used in the appraisal process is critical in determining the value of the property. If the appraiser is not using reliable data, it could lead to an inaccurate appraisal.
Example: “There are a number of sources of information that appraisers use when appraising commercial properties. These include public records, such as property tax records and sales data; private databases, such as those maintained by real estate brokerages; and on-site observation. In addition, appraisers may also interview property owners, managers, and other stakeholders to gather information about the property.”
How do you determine the appropriate method or methods to use in valuing a particular property?
An interviewer would ask this question to a commercial real estate appraiser to gauge their knowledge of the different methods that can be used to value a property. It is important for an appraiser to be familiar with different methods because the appropriate method to use depends on the type of property being valued and the purpose of the valuation. For example, if the property being valued is a vacant lot, the appraiser would use a different method than if the property being valued is a office building. The appraiser needs to be familiar with different methods in order to properly value a property.
Example: “There are three main approaches to valuing a commercial property: the income approach, the sales comparison approach, and the cost approach. The income approach is the most commonly used method for valuing commercial properties, as it takes into account the potential income that a property can generate. The sales comparison approach looks at comparable sales of similar properties in order to determine value, while the cost approach looks at the replacement cost of a property.”
Can you provide an example of a situation where you had to use more than one method of valuation in order to come up with an accurate value for a property?
An interviewer would ask this question to a commercial real estate appraiser to gauge their experience and understanding of different valuation methods. It is important to be able to use more than one method because each method has its own strengths and weaknesses. By using more than one method, an appraiser can get a more accurate picture of the true value of a property.
Example: “I was appraising a office building and the owner wanted to know how much it would cost to replace. I used the square footage method and the unit in place method to come up with an accurate value for the property.”
How do you deal with unusual or unique properties that don't have any direct comparables?
An interviewer would ask this question to a commercial real estate appraiser to gauge their ability to appraise properties that do not have any direct comparables. This is important because it shows whether or not the appraiser is able to think critically and come up with an accurate appraisal for a property even when there is no similar property to compare it to.
Example: “There are a few different ways to approach this. The first would be to look at similar properties in the same general area and make adjustments for the differences. This is often called the "market approach."
Another option would be to use the cost approach, which looks at the cost of rebuilding the property from scratch. This can be tricky with unique properties, but you can often get a good idea of the replacement cost by looking at similar properties that have been recently built or renovated.
Finally, you could use the income approach, which looks at the potential rental income of the property. This can be difficult to estimate for unique properties, but you can often get a good idea by looking at comparable properties in the same area.”
What do you think is the most important thing to remember when appraising commercial real estate?
There are a few reasons why an interviewer might ask this question to a commercial real estate appraiser. First, it allows the interviewer to gauge the appraiser's understanding of the appraisal process and the factors that are important to consider when appraising commercial real estate. Second, it allows the interviewer to see how the appraiser prioritizes different factors when appraising a property. Third, it gives the interviewer insight into the appraiser's thought process and how they approach valuation.
The most important thing to remember when appraising commercial real estate is that there are many factors to consider and no two properties are exactly alike. Every property is unique and must be evaluated on its own merits. The appraiser must consider the location, condition, age, and income potential of the property when determining its value.
Example: “The most important thing to remember when appraising commercial real estate is to always be aware of the highest and best use of the property. The highest and best use is the use that would produce the highest economic return for the property, and is not necessarily the current use of the property.”
What are some of the common mistakes that appraisers make when valuing commercial properties?
There are a few reasons why an interviewer might ask this question to a commercial real estate appraiser. First, it allows the interviewer to gauge the appraiser's knowledge and expertise in the field. Second, it helps the interviewer understand the appraiser's thinking process and how they would approach valuing a commercial property. Finally, it gives the interviewer insight into the potential risks and challenges that might be associated with a particular property.
Example: “Some of the common mistakes that appraisers make when valuing commercial properties include:
1. Not understanding the property type.
2. Not considering all of the relevant factors when estimating value.
3. Overlooking key details in the property description.
4. Failing to account for recent market trends.
5. Using outdated comparable sales data.”
How do you avoid making mistakes when appraising commercial real estate?
There are a few key ways to avoid making mistakes when appraising commercial real estate:
1. Make sure you have a clear understanding of the purpose of the appraisal and the client's needs. This will help ensure that you are focusing on the right factors and gathering the appropriate data.
2. Thoroughly research the property and the market. This will help you understand the property's value and ensure that you are not making any erroneous assumptions.
3. Pay close attention to detail. This is especially important when it comes to things like measuring the property and analyzing comparable sales data.
4. Be conservative in your estimates and assumptions. It is better to err on the side of caution than to overstate the value of the property.
5. Keep good records and documentation. This will help you defend your appraisal if there are any questions or challenges.
Example: “There are a few key things to keep in mind when appraising commercial real estate that will help avoid making mistakes. First, be sure to thoroughly understand the purpose of the appraisal and the client's needs. This will help ensure that the right information is gathered and analyzed. Second, be sure to use reliable and up-to-date data sources. This includes things like market data, property data, and economic data. Finally, be sure to use sound judgment and reasoning when analyzing the data and making conclusions. If something doesn't seem right, it probably isn't. Trust your gut and double check your work to avoid making mistakes.”
What do you think is the biggest challenge facing appraisers today?
There are a few reasons why an interviewer would ask this question to a commercial real estate appraiser. First, it allows the interviewer to gauge the appraiser's understanding of the industry and the challenges it faces. Second, it allows the interviewer to see how the appraiser plans to stay ahead of those challenges. Finally, it allows the interviewer to get a sense of the appraiser's overall attitude and approach to their work.
Example: “The biggest challenge facing appraisers today is the increasing complexity of the real estate market. There are more types of properties, more types of financing, and more types of buyers and sellers than ever before. This makes it difficult to keep up with all the changes and to know what is truly going on in the market. Additionally, there is a lot of pressure to be accurate in your appraisals, as even a small error can have a large impact on the value of a property.”
What technology do you use in your work as an appraiser?
The interviewer is trying to gauge the appraiser's level of experience and expertise. It is important to know what technology the appraiser uses in order to determine if they are up-to-date on the latest tools and methods.
Example: “As a commercial real estate appraiser, I use a variety of technology in my work. This includes everything from basic office software like Microsoft Office to more specialized tools like appraisal specific software. I also use technology for research purposes, accessing data and market information through various online databases and portals. Additionally, I often use GPS and mapping software to help me locate properties and assess their surroundings.”
What do you think the future of appraisal is, and how will it impact your work?
The interviewer is asking this question to gain insight into the appraiser's thoughts on the future of the industry and how they believe it will impact their work. It is important for the interviewer to understand the appraiser's views on the future of appraisal in order to gauge their level of knowledge and experience. Additionally, this question allows the interviewer to determine if the appraiser is up-to-date on industry trends and changes.
Example: “The future of appraisal is likely to be more data-driven and technology-based. This means that appraisers will need to be comfortable working with data and using technology in order to be successful. Additionally, the role of appraisers is likely to become more consultative, as they will be called upon to provide advice on a variety of real estate-related matters.”