What Not to do in a Real Estate Modelling Test: Common Mistakes That Cost You the Job.

If you're preparing for a real estate modelling test, listen up - because this could save you from blowing your shot.

I've marked more than my fair share of modelling tests. And the same mistakes crop up time and time again. Sometimes it's the formatting. Sometimes it's the maths. But more often than not? It’s the basics - failing to follow instructions, copying old models, and missing the entire point of the test.

In this blog, I’m walking you through the most common real estate modelling test mistakes - based on real examples I’ve reviewed.

What is a real estate modelling test?

If you're applying for analyst, associate or investment roles in real estate, chances are you'll be asked to complete a financial modelling test. These tests are designed to assess whether you can take a set of assumptions - usually from a brochure or info pack - and build a working Excel model from scratch. Sometimes you'll also be asked to write a short investment paper or present your findings. They're not just about technical skills - they're a chance to show commercial judgement, time management, and clear communication under pressure.

Here are five of the most common - and costly - mistakes I see in real estate modelling tests.

1. Don’t recycle old workbooks

This might sound obvious, but I’ve opened models supposedly built “from scratch” that were actually created in 2015. If I can see that in the file metadata, so can your assessor. Always start with a clean Excel file - no hidden formulas, no unnecessary named ranges, no baggage.

2. Make your model flexible

One of the biggest fails? Hardcoding everything. I’ve seen candidates manually type out cash flows, build models that can’t adjust for new tenants, or tweaks to the ERVs (Estimated Rental Values). To showcase your skills properly and show that you are worth hiring - you need to build something that flexes.

If I ask, “push the sale out by 1 year” can your model handle that? If the answer’s no, you’re not getting the job.

3. Format your model nicely

Your model needs to be easy to follow. That means:

• No clashing fonts or inconsistent number formatting

• Proper use of colour to distinguish inputs and outputs

• Clearly labelled tabs and sections

• Borders and layout that guide the user

If I have to spend 15 minutes just trying to work out how your model works, I’ve already mentally ruled you out.

4. Watch out for major calculation errors

Let’s talk about IRR.

If the test says the investor is targeting 10%, and you’ve submitted a model with a 46% IRR... something’s gone badly wrong. These things happen - I still make mistakes building models - but the worst mistake? Not acknowledging it.

Even if you’re running out of time, leave a note. Say: “I think something’s gone wrong in the cash flow. IRR looks too high, but I haven’t had time to fix it.” That shows awareness and commercial judgement - far better than pretending it’s fine.

5. Follow instructions carefully

In one test, I asked candidates to submit two separate models. One person combined both into a single file - even though the brief was clear. When you don’t follow instructions, it raises questions. Does this person have good attention to detail? Will they work well as part of a team?

It might sound like I’m being picky - but the purpose is to see whether you can do the job properly.

Modelling tests aren’t just about your technical skills - of course the employer wants to know that you can actually use Excel and build a financial model. But they’re also about you - who you are as a person, an employee and a team member.

That’s what I teach you to in the How to Pass Financial Modelling Tests & Interviews course:

• Build a flexible financial model from scratch – in under two hours

• Present it clearly and professionally

• And avoid all the common mistakes I see in test after test

Want to see exactly how to build a real estate model that stands up to scrutiny – and gets you hired?

Join the EiP Academy and get access to step-by-step training, mock tests, and expert tips to help you pass with confidence.

🎥 Prefer to watch? This 10-minute video covers what real estate modelling tests involve – plus six practical tips to help you avoid common mistakes: