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Waterfront Property Appraisals

Newz: Rate Drops and Appraisers, UAD Overhaul, Avoiding Court

September, 30 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Avoiding Court: A Common Sentiment Among Appraisers (LIA ad below)

  • Making Waves: Appraising Waterfront Property

  • $850K Nantucket ‘Shack’ That Looks Set To Plunge Into the Sea

  • New UAD Overhaul: What Appraisers Can Expect in 2025 & Beyond

  • Sticky Prices

  • The Fed is finally lowering interest rates. What does it mean for appraisers?

  • Experts Predict Where Mortgage Rates Are Headed in 2025 as the Fed Cuts Rates

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Making Waves: Appraising Waterfront Property

Excerpts: Appraising waterfront properties involves a comprehensive evaluation of various factors that go beyond typical residential appraisals. By considering the unique aspects of water frontage, local regulations, environmental factors, and property-specific amenities, you can provide credible and comprehensive valuations that reflect the worth of these highly sought-after properties.

Understanding the depth, quality of the water, and type of shoreline is crucial, as these elements directly influence the property’s usability, aesthetics, and long-term stability. The importance of these factors cannot be overstated, and they deserve careful consideration in every waterfront property appraisal.

1. Water Frontage and Access

One of the most critical elements in appraising waterfront properties is the type and extent of water frontage. The value can vary significantly depending on whether the property is adjacent to a lake, river, ocean, or pond.

5. Depth of the Water

The depth of a water body significantly affects its usability, particularly for recreational activities like boating, fishing, and swimming. Shallow water might limit boating and can lead to stagnant water, which may contribute to unpleasant odors and an increase in insects like mosquitoes.

Conversely, deeper water is often clearer, supports a healthier ecosystem, and is more desirable for recreational use, thereby enhancing property value.

To read the details on all 8 factors, Click Here

My comments: Excellent article. Worth reading. The best I have read on this topic. Even if you never appraise a waterfront home, most people have been to a lake or other type of waterfront property on vacation. I live on an island in San Francisco Bay with water on all sides plus a small area on a nearby peninsula with 3 sides waterfront. I moved here in 1980 and appraised hundreds of waterfront properties including condos plus semi-detached and detached homes.

I lived for 25 years in three waterfront homes with boat docks in my city and am very familiar with with the issues above. I have appraised waterfront homes with 7 of the 8 factors in the blog post, except utilities as all were public utilities with no problems).

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Posted in: appraisal how to, appraisal modernization, Economic analysis, liability, Mortgage interest rates

Appraisal Value Vs. Sale Price

AI and Appraisal Success, Cindy Chance Terminated (Appraisal Institute CEO)

September 20, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Using Trainees, the Safe Way
  • Appraised Value Vs. Sale Price
  • Converted $500K Minnesota Bank With Historic Vaults and Bulletproof Glass
  • How AI Tech is Reshaping Appraisal Success
  • From Panic to Profit: One Appraiser’s Story of Survival and Growth
  • Cindy Chance Terminated (Appraisal Institute CEO)
  • Mortgage applications increased 14.2 percent from one week earlier

Appraised Value Vs. Sale Price

Excerpts: Property sellers often ask professionals who are performing appraisals for mortgage lending, “Why is an appraisal even needed? The buyer and I have already agreed on a sale price.” However, when it comes to appraised value vs. sale price, they are not the same thing.

What is Value?

Value is defined in the Uniform Standards of Professional Appraisal Practice (USPAP) as:

“The monetary relationship between properties and those who buy, sell, or use those properties, expressed as an opinion of the worth of a property at a given time.

Comment: In appraisal practice, value will always be qualified—for example, market value, liquidation value, or investment value.”

What is Sale Price?

Unlike value, price is not an opinion. It is a fact. Price is defined in USPAP as:

“The amount asked, offered, or paid for a property.

Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to the property by others.”

What’s the Difference Between Sale Price and Appraised Value?…

If a property is under contract for purchase at $450,000 and an appraiser provides a market value appraisal of $425,000 for the property, the $450,000 sale price is a fact, while the $425,000 appraised value is the appraiser’s opinion. The $450,000 price is what the property is actually selling for. The $425,000 market value opinion is what the property should sell for, under the specific conditions of the definition of market value.

The Appraiser’s Role

Properties don’t always sell for what they should. Depending on many factors, including the motivations and negotiating skills of the parties involved, a property might sell for more than its value, less than its value, or right at its value.

To read more, Click Here

My comments: Short and worth reading. Good analysis – for newer and more experienced appraisers.

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Posted in: AI, appraisal business, Appraisal Institute, liability

Appraising New Construction

September 13, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Family Feud and Intended Use
  • 6 Tips for Appraising New Construction Homes
  • Vast $100 Million Equestrian Estate With a Bowling Alley in Rancho Santa Fe, CA
  • Mortgage Volume Forecasts
  • New UAD GSE online appraisal report samples
  • Inside the Tiny Arkansas Town Where Homes Sell for $400—With a Huge Catch
  • Mortgage applications increased 1.4 percent from one week earlier

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2024 Updated UAD and URAR – What does It Mean for You?

Real Estate Agents and Comparable Sales – Tips for Appraisers

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6 Tips for Appraising New Construction Homes

Excerpts: Lenders, FHA, and the GSEs (Fannie Mae and Freddie Mac) treat new construction a little differently. When appraising new construction homes, certain factors that don’t always apply to existing dwellings must be considered.

New construction appraisals require more work, so you want to charge a fee that is commensurate with the work involved. Perhaps more than that, you need to follow the proper protocols. Stick to these best practices to ensure you cover all your bases when performing a new construction appraisal.

1. Don’t rely totally on blueprints during a new construction appraisal

2. Gather as much detail about plans and specs as you can

3. Keep a file of local building costs

4. Be careful when choosing comparables for a new construction appraisal

5. Use the sales comparison method for site value (if possible)

6. Know the applicable requirements for an appraisal on new construction.

To read more, Click Here

My comments: Read this if you do new construction. I have done many new home appraisals from one-off custom homes to all sizes of projects. My advice: Always check what plan and updates were actually built when doing final inspection. Getting the actual costs and upgrades can be difficult to obtain on the subject and the comps from the project sales office. I always asked to see the final sales document data. Sometimes I got them.

I finally quit doing them – too much hassle. There is little new construction where I work, except for infill projects – townhomes and and condos. My area is almost fully developed, so I did not lose much work. On the plus side, I learned a lot about construction!

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Posted in: appraisal modernization, GSEs, liability

Appraiser and Real Estate Agent Communication

Newz: Disturbing AMC Violations, Appraiser and Real Estate Agent Communication

September 6, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • Top 10 Things Appraisers Wish Real Estate Agents Understood
  • Divorce Appraisal Red Flags
  • Carmel’s Iconic and Artistic ‘Owl House’ $3,750,000
  • Housing Market Update: August 2024
  • Please! Not Another Highest and Best Use Question?!
  • Appraisal Regulation Compliance Council Exposes Disturbing AMC Violations
  • Mortgage applications increased 1.6 percent from one week earlier

Real Estate Agents and Comparable Sales – Tips for Appraisers

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Top 10 Things Appraisers Wish Real Estate Agents Understood

McKissock Survey

Excerpts: Survey question: “What’s one thing you wish real estate agents knew about the appraisal process?”

Based on the answers we received, appraisers wish that agents knew the following:

  • The appraisal process is complex and takes time
  • Appraisers do not assign value
  • Appraisers are unbiased and must follow guidelines
  • Appraisers need their input and cooperation
  • How to select appropriate sales comps
  • The importance of providing accurate and detailed info in their listings
  • How to determine correct GLA (gross living area)
  • How renovations and upgrades affect value
  • How to prepare for the appraisal appointment
  • FHA/VA/USDA guidelines

Sample appraiser answers:

“How complex it really is. We don’t just pull numbers out of the air—they are market supported adjustments backed by ‘many angles“

Some brokers regard the appraiser as an adversary, who potentially can ruin their deal and end up without commission. They should learn that the appraiser is neutral and cooperating can be a benefit.”’ of research.”

“Entering an occupied home without agent or home owner present is a liability issue for appraisers—[we] need someone present to observe what we do.”

To read more, Click Here

My comments: Read the blog post and maybe get some good ideas for answering agent questions!

Many years ago a top local agent asked me why I was driving around taking photos. I explained they were similar homes (comps) I may be using in an appraisal. I realized she did not know much about what appraisers do.

When I started my appraisal business in 1986 I did presentations at all the local real estate offices, usually during their marketing meetings. I explained what appraisers do and how agents and appraisers can work together. They liked the information.


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Posted in: AMCs, appraisal, Appraisal fees, Economic analysis, non-lender appraisals

AI and Appraisers

August 30, 2024

What’s in This Newsletter (In Order, Scroll Down)

  • New AMC client. They’ve asked me to provide a list of other AMCs I work with and how long I’ve been working with them before they accept me. Is this a common requirement?

  • AI Appraisals: Embracing the Future Appraisal

  • 5 Enormous Mansions, With Wildly Different Architectural Styles—Priced at Under a Million Bucks

  • Is appraisal accuracy measured by contract price?

  • Redfin Reports 6 of Every 7 People With Mortgages Have an Interest Rate Below 6%

  • 110 Nightmarish Home Inspector Scenarios

  • Mortgage applications increased 0.5 percent from one week earlier

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AI Appraisals: Embracing the Future Appraisal

By Jim Amorin

Excerpts:

Image Recognition

AI can analyze property images to identify features and property conditions, and even estimate dimensions with remarkable accuracy. This technology accelerates the inspection process, allowing appraisers to focus their expertise on more nuanced aspects of the valuation where their experience and judgement are most critical.

While some may worry about image recognition taking away from the appraisers’ skills, it is more useful to see it as a supplement to your own eyes. The visioning capabilities (image recognition) of AI can reinforce your own observations. Using the generative capabilities of a large language model such as ChatGPT coupled with the visioning tools, some of the narrative description of the property can be streamlined for the appraiser.

Enhanced Reports

Another appraiser leveraged AI tools to generate detailed market analysis reports. These reports included data visualizations and trend analysis that provided clients with a deeper understanding of the market, ultimately enhancing the appraiser’s service quality and client satisfaction.

Summary

AI is not a threat to appraisers but a powerful ally. By leveraging AI’s capabilities, appraisers can enhance their efficiency, accuracy, and overall service quality. The unique judgment, expertise, and contextual understanding that appraisers bring to their work are irreplaceable. Embracing AI as a tool will ensure that appraisers continue to play a vital role in the real estate industry, delivering unparalleled value to clients and shaping the future of real estate appraising.

To read more, Click Here

My comments: Amorin’s new book is very well written and understandable. Craig Gilbert wrote an extensive review of the book “The Generative Shift: A Thorough Examination of AI” and interviewed Amorin, in the July, 2024 issue of Appraisal Today.

I have not used AI for my appraisals but follow its use in other applications, such as medical. For example, I have had many mammograms over the years. A recent study found that an artificial intelligence system has an accuracy rate of about 90 percent, compared to an overall average of 80 percent by radiologists. “Notably, when radiologists used this tool as a second reader, their performance improved,” says Dr. Moy. “So we want to reach that sweet spot where we use both.”

A friend had dense breasts. Her mammograms never detected the small tumors scattered through both breasts before her breast removal surgery, where they found them. Bad News

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Posted in: AI, appraisal, appraisal management company, liability, Mortgage interest rates

Appraisal Reviews – Who and What

August 23, 2024

What’s in This Newsletter (in Order, Scroll Down)

  • Construction Progress Reports: ADUs & Remodels
  • What Is an Appraisal Review and Who Can Be a Reviewer?
  • Billionaire Getty Heir Puts Extraordinary Greek Temple (Temple of Wings) on the Market for $5 Million
  • Redfin Reports Investor Home Purchases Post Biggest Increase in Two Years
  • The Biggest Home in Each State
  • Objectionable Valuations Become Hate Speech, Inflating Home Prices
  • Mortgage applications decreased 10.1 percent from one week earlier

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What Is an Appraisal Review and Who Can Be a Reviewer?

Excerpts:

Topics:

  • What is an appraisal review?
  • Fact-checking vs appraisal review
  • Types of appraisal review reports
  • Why are appraisal reviews needed?
  • Who requests a property appraisal review?
  • Who can review a property appraisal?

The client base for appraisal reviews is vast and diverse, encompassing a wide range of sectors and needs.

  • Lenders rely on reviews to ensure the accuracy and reliability of appraisals before making lending decisions.
  • Investors use them to evaluate the value and risk of potential investments.
  • Attorneys order reviews to support legal matters involving property valuation, including disputes and condemnation cases.
  • Insurance companies use them for verifying property values in underwriting and claims.
  • Government agencies may request reviews for regulatory purposes, tax purposes, or right-of-way acquisitions.

To read more, Click Here

My comments: Comprehensive info on reviews. Short and well written. The best I have read, whether you are a reviewer or an appraiser being reviewed. Reviewing is an excellent option for fee appraisers and staff appraisers.

Personally, I quit doing lender reviews many years ago. I preferred to do the appraisal rather than reviewing an appraisal where I have to also appraise the property. Back in the “old days” I reviewed competent local appraisers I knew.

The final blow later for me was a 4 unit property where the appraiser appraised it as a home. There were 4 electrical meters and lots of cars. When I called my client, they just wanted to know if the value was the same as a house or 4 units. I did not reply. It was my last review for lending purposes. I verified with the city that it was a 4 unit property. There was no information that it had been converted to a single family home. Mortgage rates and requirements are lower for SFRs.

On the other side, many appraisers who do lender reviews say they learned a lot about how appraisers appraise.

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Posted in: appraisal, appraisal reviews, real estate market

Types of Appraisal Values

Market Value and Appraised Value: Exploring Various Appraisal Values

By Jo Traut

Excerpts: You’ve probably been asked about the difference between “market value and appraised value” by clients seeking a mortgage. However, from the perspective of the valuation profession, this isn’t an accurate question. We don’t provide an appraised value of a property. Instead, we provide an informed, objective opinion of the value of the property based on several factors and criteria as well as the type of value we’re asked to provide. Learn more about the different appraisal values and the factors that go into each.

Summary

Value in real estate is an opinion on a property’s worth influenced by market conditions and perceptions, distinct from price and cost. It includes various types, such as market value and intangible value, each serving different appraisal and financial purposes.

While most appraisals aim to determine an opinion on market value, not all appraisals are centered on this. Depending on the specific appraisal assignment, different types of value may be considered. Let’s examine eight different types of value and provide a high-level overview of each.

Understanding Market Value

Market value is the most frequently sought value in real property appraisals and can have various definitions. Most often, it is defined as the most probable price a property should sell for under typical conditions. This price assumes a reasonable exposure time on the market, with both buyer and seller acting prudently and without duress.

Types of Value (Partial List)

  • Assessed Value
  • Investment Value
  • Insurable Value
  • Value in Use
  • Book Value
  • Intangible Value

To read more, Click Here

My Comments: Read this article! It is the best article I have read on different types of values, plus other comments. Most appraisers use the “Fannie Mae” definition of market value. For non-lender appraisals, I have made up my own definitions, depending on what the client wants to know about their property.

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8-9-24 What’s in This Newsletter (in Order, Scroll Down)

  • Market Value and Appraised Value: Exploring Various Appraisal Values
  • Tappable Equity Reaches Record High
  • 5 Move-In Ready Homes Priced Under $100K
  • Lack of Fee Transparency: Exposing the AMC Exploitation
  • Implementation date for Reconsideration of Value updated to October 31 by GSEs and FHA
  • Home Appraisal Price-Gap Analysis Shows That Home Appraisals Were Higher Than Sale Prices 51% of the Time
  • Mortgage Applications increased 6.9% from one week earlier

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Posted in: AMCs, appraisal business, ROVs

SFR or 2 units with an ADU?

What’s in This Newsletter (in Order, Scroll Down) August 2, 2024

  • Avoiding Court: A Common Sentiment Among Appraisers
  • When Is Single-Family a Multi-Family Appraisal?
  • What Is a Superhome? 10 Must-See Mansions That Define the High-End Trend
  • Accurate Appraisal Underreporting
  • How Confidential is Your Appraisal?
  • Agencies Issue Final Rule to Help Ensure Credibility and Integrity of Automated Valuation Models
  • Mortgage applications decreased 3.9 percent from one week earlier

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How to Identify a Single-Family with ADU vs. Two-Family Property 9-29-23-

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When Is Single-Family a Multi-Family Appraisal?
SFR or 2 units with an ADU?

by Richard Hagar, SRA

Excerpts: Once upon a time, it was easy to classify single-family homes, duplexes, triplexes and multi-family buildings. Though there have always been exceptions, if a property was zoned single-family residential (SFR) and there was a single home on the site, you’d use a 1004 form for bank appraisals.

If a property was zoned multi-family and there were two to four units on the site, an appraiser would use the 1025 form. And, if there were five or more units on the site, it would be something a commercial appraiser would handle via a narrative format.

Ah, the good old days. Then, along came accessory dwelling units (ADU), which in some states and cities are messing with established appraisal and lending systems.

Things Get Twisted – ADUs

Many counties and cities that allow ADUs do not “change” the official zoning; SFR 5000 still means one single-family home per 5,000-square-foot lot (and allow an ADU). What a few politically and emotionally driven cities have done is bypass the normal requirements for changing zoning (public hearings, notifications, etc.) and passed laws that overlay additional uses and requirements on to existing zoning codes. It’s their “clever” way of changing things without following the historic path to … well, changing things without informed consent by the citizens.

So, here we are: appraisers looking at zoning codes trying to determine the highest and best use for the subject’s site (as if vacant) and the structure as improved. We see SF7500 and say, “great, single family.” But did you look to see if there are overlay additions to the code? If so, did you read them? Did you look at regulations related to accessory dwelling units? If you didn’t, you’d better start looking because these things are popping up in numerous counties and cities across the United States, and they have a massive impact on unit density, the highest and best use, land values and depreciation rates.

Conflict With Lending

The Federal National Mortgage Association (FNMA) will buy a loan where the single-family home has a single ADU. Look at the below form (Figure 1) and note the two options: Units “One” and “One with Accessory Unit.” There is no space on the 1004 form to identify a second ADU.

Now we have a conflict between cities allowing two or more ADUs and the lending world of FNMA, the Federal Home Loan Mortgage Corp. (FHLMC), the VA and FHA. These entities will not buy loans with two or more ADUs. And when FNMA won’t buy (or VA and FHA insure) a loan from a lender it results in fewer lenders offering loans, higher interest rates and possibly larger down payments. In a city’s zeal to lower the cost of housing, they’ve increased the cost of housing.

Required Information

When you run across properties with ADUs, all sorts of additional information is required in the appraisal. ANSI requires the square footage to be separately indicated. Fannie Mae needs additional information specific to the ADU, and just wait until you see FNMA’s new appraisal “form,” along with its 20-plus new information fields in the special ADU section. If you want an example of how we provide square-footage information, email me (See author bio) and I’ll provide you with a copy of the form we use.

The appraisal will also require fully supported adjustments, explanations on how you determined the adjustments, and the ADUs impact on value measured by the cost, income and sales comparison approaches.

To read more, Click Here

My comments: Read this detailed article if you appraise any properties with ADUs. It is a comprehensive analysis of all the new issues. Richard Hagar is one of my favorite appraisal instructors.

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Posted in: ADUs, appraisal, AVMS, liability

Freddie Mac Appraisal Advice

Newz: Freddie Mac Insights, HUD Bias charges against Appraiser, Lender and AMC, ROV Guidance

July 26, 2024

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What’s in This Newsletter (in Order, Scroll Down)

  • Judicial Appraiser Panels
  • Appraisal Insights With Freddie Mac
  • HUD Charges Appraiser, Appraisal Management Company, and Lender with Race Discrimination
  • Agencies Finalize Interagency Guidance on Reconsiderations of Value for Residential Real Estate Valuations
  • ‘Twisters’ Begs the Question: Can You Truly Tornado-Proof a Home? A Reality Check
  • Southernmost House in Continental U.S. Is for Sale in Key West (It’s Next to the Buoy) for $18.5 million
  • Mortgage applications decreased 2.2 percent from one week earlier

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Appraisal Insights With Freddie Mac

by Scott Reuter, Freddie Mac

One of the goals at Freddie Mac is to help lead the way toward a more transparent and equitable housing finance process. Across our many priorities, we’re committed to offering trends, best practices and insight to the industry. As strategies continue to develop and evolve, we believe it’s important to engage and communicate with stakeholders, so here are three key items we believe appraisers should keep top of mind in 2024.

1. More Objective Appraisals

An important component to transparency is ensuring that appraisal reports for loans sold to Freddie Mac are free of subjective or potentially biased language…

2. Market Conditions Analysis

Market conditions analysis is the backbone of an appraisal. It’s a necessary step in developing credible reports. This analysis is the study of market area conditions and the changes in price levels over time…

It’s important to note from a development perspective that market conditions must be analyzed on every appraisal assignment. Market adjustments should not be viewed as a filler adjustment. Market conditions adjustments are technically among the first modifications that should be made, before accounting for physical differences. Taking shortcuts here diminishes the reliability of the adjustments that follow and the overall credibility of the appraisal report.

3. Quality vs. Condition

While most appraisers demonstrate a solid understanding of the quality and condition ratings, Freddie Mac still sees inconsistencies in the way these are reported. As might be expected, most of the issues for reported condition fall between the definitional lines of C3 to C4 and C4 to C5.

Also, there seems to be a notion by some appraisers that a C3 condition is equal to “average.” Please be mindful that a C3 home is described as generally well-maintained and showing minimal physical depreciation from regular wear and tear. In contrast, a C4 condition applies to a home that’s adequately maintained, has slight deferred maintenance and minor physical wear and tear, and may need cosmetic or minor repairs.

The author, Scott Reuter is single-family chief appraisal officer for Freddie Mac. He is a certified general appraiser with more than 30 years of experience in valuation, appraisal and collateral risk management concerns.

To read more, Click Here

My comments: Well written and practical. Worth reading, with good tips and links for all the topics. If you do residential lender appraisals, read this article.

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Posted in: bias, climate change, liability, ROVs

GSE Appraisal Reports Online

What’s in This Newsletter (in Order)

  • Confirming Construction Progress
  • The New UAD: “Don’t Borrow Trouble.”
  • Nicolas Cage’s Former New Orleans Mansion Lost to Foreclosure listed for $10,250,000
  • When will interest rates drop?
  • Who will refi when rates are lower?
  • Uncovering Flaws in FHA Appraisal & Loan Review Process
  • Home Insurance: It’s Not The Hurricanes In High-Cost Areas, But The Tornados In Low-Cost Areas That’ll Get You By Jonathan Miller
  • Iconic ‘Constellation 167’ House in Los Angeles for $10.9M
  • Mortgage applications increased 3.9 percent from one week earlier
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UAD and Forms Redesign Update for Appraisers (from 12-15-23)

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The New UAD: “Don’t Borrow Trouble.”

By Ernie Durbin, July 15, 2024

Excerpts: Reflecting on one of my father’s favorites, “don’t borrow trouble,” I find his advice particularly relevant today. It reminds me to focus on the present and not jump to conclusions about future uncertainties. What he was trying to convey was to trust in my abilities to handle challenges if and when they arise, rather than assuming the worst.

Many in our industry are “borrowing trouble” when they prematurely conclude that the new UAD and GSE report writing requirements will be detrimental.

The problem is… it’s not a form. The new Uniform Residential Appraisal Report (URAR) is an appraisal report expressed as a form. This may seem like semantics, but it is a very important distinction. Although the UAD data set is all-inclusive of property types, only the data points necessary for a specific property need to be reported.

The dynamic nature of the new report will result in “form” outputs that are remarkably shorter than the early examples provided by the GSEs. As an example, if the income and cost approaches are not necessary for credible results, these elements will not be included in the appraiser’s workflow or the final URAR.

To read more, Click Here

My comments: Worth reading. Current forms date back to 2005. A lot has changed since then, but somehow, we have to put it into our appraisal reports. I much prefer the “Turbo Tax” model where you only see what is relevant for what you are appraising. Changes to the software can be made at any time.

I am looking forward to online software for appraisal reports. Since 2006, I have used Constant Contact for this newsletter, which is completely online. Changes, when needed, such as additional features, can be done easily. With Office 360, Word and Excel software is online. I can work on any computer, anywhere. Of course, I have other software on my computers, including Excel and Word, if my Internet goes out ;>

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Posted in: app, appraisal business, appraisal forms, FHA, HOME INSURANCE, UAD