Which of the following should you avoid in a real estate model?

• A. Naming cells and ranges
• B. Linking sheets across files
• C. Using built-in formulas
• D. Using color-coding

Answer: (A)

Staying away from defining names for cells and ranges keeps a real estate model straightforward and easier to audit. When you use named ranges, there’s an extra layer of abstraction readers must learn to interpret, and any reorganization of the workbook or changes to the names can silently mislead or break formulas. In a complex model built for diligence or handoffs, this extra indirection increases the chance of errors and makes the workbook harder to review quickly. By contrast, explicit cell references keep calculations transparent and portable, which is highly valuable in real estate modeling where teams repeatedly share and modify models.

External links between files introduce their own fragility, so while they’re sometimes used, they add dependencies that can fail if the external file moves, renames, or isn’t accessible. Using built-in formulas is standard and fine, since they’re the bread-and-butter of calculations. Color-coding is simply a readability aid and doesn’t affect the calculation logic, though it’s helpful for quick visual navigation when used consistently.