Describe a time when you identified a mistake in an appraisal report. How did you handle it?

Sample answer to the question

During my time as an Appraisal Reviewer, I came across a mistake in an appraisal report for a residential property. The appraiser had miscalculated the square footage of the property, resulting in an inaccurate valuation. I immediately reached out to the appraiser to discuss the issue and requested additional documentation to validate the correct square footage. After reviewing the supporting documentation, it was clear that the initial appraisal report was incorrect. I documented my findings and presented them to my supervisor for further review. We decided to request a revised appraisal report that accurately reflected the correct square footage. Throughout the process, I maintained open and professional communication with the appraiser, explaining the mistake and the necessary steps to rectify it. In the end, we were able to resolve the issue and ensure the accuracy of the appraisal report.

A more solid answer

As an Appraisal Reviewer, I encountered a mistake in an appraisal report for a commercial property. While reviewing the report, I noticed that the appraiser had not considered the recent improvements made to the property, which significantly contributed to its value. To address this issue, I conducted thorough research on the property and gathered supporting documentation for the improvements. I then reached out to the appraiser to discuss my findings. I provided them with the relevant information and explained the importance of incorporating the improvements in the appraisal report. After reviewing my findings, the appraiser acknowledged their oversight and agreed to revise the report accordingly. I continued to communicate with the appraiser throughout the revision process to ensure that the necessary changes were made accurately and promptly. By identifying and addressing this mistake, I not only upheld the accuracy and integrity of the appraisal report but also fostered a collaborative and professional relationship with the appraiser.

Why this is a more solid answer:

The solid answer provides more specific details about the candidate's critical thinking and analytical skills by mentioning their thorough research and gathering supporting documentation. It also highlights their attention to detail by emphasizing the importance of incorporating all relevant information in the appraisal report. Additionally, the answer demonstrates the candidate's ability to interpret and apply regulatory guidelines by ensuring the appraisal report adhered to industry standards. However, it can be improved by further expanding on how the candidate effectively communicated with the appraiser.

An exceptional answer

While reviewing an appraisal report for a multi-unit residential property, I discovered a significant mistake that compromised the accuracy of the valuation. The appraiser had incorrectly included income from an additional rental unit, resulting in an inflated value for the property. Recognizing the potential implications, I immediately scheduled a meeting with the appraiser to discuss the issue. During the meeting, I presented my findings, backed by thorough analysis of market rents and property income statements. I also referenced the relevant sections of the USPAP guidelines to support my argument for correcting the mistake. Despite initial resistance from the appraiser, I maintained a professional and persuasive approach, emphasizing the importance of accurate valuation for lending purposes. Eventually, the appraiser acknowledged the error and agreed to revise the appraisal report accordingly. I documented the entire process and presented it to my supervisor for review, ensuring transparency and accountability. This experience further strengthened my critical thinking, analytical skills, and ability to interpret and apply regulatory guidelines.

Why this is an exceptional answer:

The exceptional answer demonstrates exceptional critical thinking and analytical skills by conducting thorough analysis of market rents and property income statements. It also showcases the candidate's deep understanding of regulatory guidelines by referencing relevant sections of the USPAP guidelines. Additionally, the answer highlights the candidate's effective communication and interpersonal skills by describing their professional and persuasive approach during the meeting with the appraiser. The candidate's ability to maintain transparency and accountability through documentation and review is also commendable. Overall, this answer exceeds the expectations outlined in the job description.

How to prepare for this question

Familiarize yourself with the USPAP guidelines and stay updated on any changes or revisions.
Develop strong analytical skills by practicing reviewing and analyzing appraisal reports.
Improve your knowledge of the real estate market and property valuation trends.
Practice effective communication and interpersonal skills to address mistakes professionally and collaboratively.
Pay attention to detail and double-check your work to ensure accuracy in appraisal reports.

What interviewers are evaluating

Critical thinking and analytical skills
Detail-oriented
Ability to interpret and apply regulatory guidelines
Effective communication and interpersonal skills