Release Notes - UAAR 2005 Update 1

Download Update 1

AgWare is pleased to release the first updated version of the UAAR© software for 2005. There have been many additions, but first I would like to talk about "changes" in a general sense. For some time, there has been criticism that the UAAR© lacked "flexibility" and some federal agencies and lenders prefer more "comments". Therefore, AgWare has added several "narrative-style" pages to offer alternatives to the more traditional or "fixed" pages. As a result, the user has several pages to choose from to accomplish the same task.

Rural Residential Forms

AgWare is also pleased with the response to our "rural residential" forms released in 2004 -- forms that are not found in any other software vendor’s packages. These were added to the base UAAR© forms to address "rural" homes, rural homes on large rural acreages, and homes on large transitional acreages. The point being, most formats do not adequately deal with "excess land" -- or land in excess of the main house acreage; or properties with multiple out-buildings in addition to the house. In 2004, AgWare released the first group of pages designed to meet that need. In this 2005 update release, we have added an in-depth "Cost Approach" page and several "Part-Time Farm" pages to further address the growing need in this specialized field. Within the next year, we plan on offering a "stand-alone" version of the rural residential portion of the software.

SARR Additions

AgWare has added the SARR© "Lender Version" in this release. Lenders requesting the UAAR© format have designed a shorter and more "lender-friendly" version for their use.

Grouping Forms by "USE" in UAAR ClickFORMS

"Folders" have been added to the UAAR ClickFORMS to group pages by "use" since the user now has more than one alternative to display the same material. Previously, when you opened the "UAAR Forms", an array of pages were displayed that occupied your entire screen -- and with the new additions, you couldn’t view all pages. Thus, the pages within the UAAR© container have been segregated into folders that would emulate the thought process to assemble a report. They include:

1. Report Introduction
2. Definition of Value
3. Subject Description
4. HBU (Highest and Best Use)
5. Data Analysis
6. Approaches
7. Assumptions & Limiting Conditions
8. Certifications

So, look in the folders for the pages you need to design your appraisal report. Please remember that once a "standard" group of pages have been selected, placed in the order you desire, and formatted (indent, rename, or modify headings, etc.) -- save that "group" as a template. That should make the next report much easier by calling the template into the new container.

Formatting

Formatting is always a question. When you launch the UAAR© go to "Edit > Preferences > Application", and then finally to the "Saving" tab. The "check-box" on the lower right portion of the screen should be "checked" which reads "Always ask if you want the formatting changes made to the Forms Library". Then when you save a container and exit the program, you will be prompted to "accept" or "reject" the formatting changes you may have made during the last use of the program. For example, if you typically "left justify" the "company name" -- make the change on each page in your container; then, when you leave the program it will prompt you to save the "formatting changes"....simply, click "yes". The next time you open the template, or pull that page from the FormsLibrary© into a new container, the SAME FORMAT will appear. Unfortunately you have to do each page in the FormsLibrary© the first time. Please note, that format procedure applies to the one and two-page data form in the dbase as well, i.e., pull the blank sale forms into a container ... format your changes, then exit -- answering the "save format" prompt. Once completed, each time those sale pages are called into a new container; they will be formatted with your new changes.

New or Changed Pages (this release)

This section discusses the new rural residential pages, specialty forms, and invoices. They will be followed by additions/changes to the "base" UAAR Forms.

Rural Residential, Specialty Forms (Dairy, Swine, Greenhouse, etc.), & Invoices:

A. Residential Building Page -- with or without RCN
This series of pages were added to allow the user to describe each building on a given property -- instead of the "single-line" previously provided in the UAAR. There are two pages that are identical with the exception "RCN" has been added to the second on the lower left portion of the page to permit calculation of cost and depreciation for each building. Use these in any combination or as many times as you need to describe the building(s) on the property appraised.

Recommendation for the new user: Use the "pre-formatted" rural residential template as a place to start, i.e., go to "File", "New", "Report from Template" and choose one of several "pre-formatted" templates instead of the blank form(s) in the Forms Library©. In this case, the residential form (with or without RCN) are shown about half way down the list -- at the "black" arrow.
Select and place the desired form into your container -- a portion of the "37" data points are shown on the right side of the page; however, the user can modify those fields and then resave as a template if you prefer different, or additional entries. As with all fields in the UAAR, the user can save "cell responses" for either the "data point" entries or their respective "responses" (immediately adjacent (right)) to minimize repetitive typing on future appraisals.
The Rural Residential Template has a group of recommended pages. For example, if you don’t like the "Cover Page" which has UAAR on the heading -- insert a different cover page -- possibly the one with photo, then modify the heading to something you prefer, and then resave as a new template. The same can be stated for the "new narrative-style" pages for this release which may be more "rural residential friendly".
Farmer Mac has two new additions consisting of the "Property Allocation" and "Summary of Appraisal Requirements" shown in the Rural Residential portion of the Forms Library©. They are straight forward and little explanation is needed.

B. Rural Residential "RCN Cost" Page
A new cost page has been added to deal with the cost new of the main house, and the other buildings or improvements (garages, landscaping, etc.). Section "A" addresses the "main house" while Section "B" includes the "non-rural residential use" improvements. There are several "auto-calc" fields -- and the user may want to print one of the completed templates to see the recommendations for content. Section "C" is merely a summary of Sections "A" and "B" and are auto-filled.

C. Specialty Forms
As you can see, there are several new templates including dairy, permanent plantings, greenhouse/hydroponics, swine, and warehouse. We initially formatted poultry, but it had limited response, so AgWare will likely wait unit we get more input before formatting that specialty page. [Note: AgWare is always open to recommendations for changes to these "pre-formatted" pages to meet the needs of the industry -- emails, calls, or letters are welcome].
Note, there are also several templates (green arrows on previous page) that have been filed with notes for the user, or containers with "recommended" pages to begin a report. The templates can be modified, changed, etc. -- so, don’t let the template govern how you address the complexity of the appraisal problem. Simply, the more complex each assignment -- the more explanation, maps, photos, and description are required under USPAP. Therefore, add or subtract pages to meet that requirement.
As before, if you elect to use blank pages instead of the templates -- simply go the normal route by going to the Forms Library© -- double clicking on the unformatted pages or dragging each page from the library into your container.
D. Invoices
Several of our AgWare users requested invoices. Two formats have been added in the Forms Library© under "UAAR© Report" that are auto-filled to some degree from the "Quick-Start" page -- the fee excepting!! AgWare is also looking for input on these additions -- pro or con.
E. UAAR© Form Changes/Additions
The Forms Library© has grown to around 200 pages -- again to allow the user to address variations in property, specialty types, etc., To that end, the volume of alternatives is a little overwhelming to a new user. You will note, the "base pages" in the UAAR© have been grouped into the eight (8) folders mentioned earlier.

1. Report Introduction
A. The Report Summary has been changed so the wording meets the current USPAP requirements (opinion v. conclusion), etc.
B. There are two narrative style pages which have been added to offer an alternative to the traditional "Report Summary" page that has been part of the UAAR package since its inception. They include the "Summary of Property Facts" (expanded area for "Scope of Work") and "USPAP and Organizational Requirements" pages. You may also have to add the "Value Definition" or other pages.
C. There are two pages to address the "Area Description". The first is the traditional page, the second page "Area-Regional Description" is the more narrative style. Choose the page that best suits your presentation.
2. Definition of Value
There are two pages in this folder that perform the same function. The first "blank" definition enables the user to import their own definition; or the second page or "formatted" version with 2005 USPAP requirements.
3. Subject Description
There are two new pages in this section consisting of the "narrative land description" and "subject valuation factors".
A. AgWare anticipates the "Narrative Land Description" page will likely be used in the transitional and/or rural residential type appraisal assignments where there is only one land type -- possibly "building site", "transitional acreage", etc. The traditional "subject land description" page includes the potential for up to 10 land types where this new page is intended to eliminate the "ag" look to the property description -- although, I have used it on large "ag" properties as well because I wanted more narrative flexibility.
B. The new "Subject Valuation Factors" page was added to bring the key subject factors into focus before the appraiser begins the "data analysis" section. One of the problems appraisers face is leading the reader through the process. After the "property description sections", we though it would be a good addition to bring the "subject valuation factors" to the fore-front, before proceeding to measure or quantify those factors through use of the "time-trend worksheet", "pairing pages", etc. This addition may also be used to explain which items are important -- those which can be quantified, and those which are recognized in the marketplace but cannot be measured due to the quantity, quality, or availability of data.
Note, the supplemental pages have been moved to this folder since they are also used to describe the subject’s irrigation, timber, or ranching uses.
4. Highest and Best Use (HBU)
This section has two new pages which can be used as an alternative to the traditional "Subject Description and Use". They include the stand-alone "Highest and Best Use" and "Larger Parcel" pages -- both narrative style.
A. Highest and Best Use narrative format leads the appraiser through the four standard tests, i.e., physical, legal, financially feasible, and maximally productive uses; then, to address the "consistent use" theory, if the property is improved.
B. The "larger parcel" page is a UASFLA (Yellow Book) requirement for federal land appraisals; however, it also has applicability in "non-federal" appraisals. For example, to give the reader some understanding about whether:
i. the appraisal of the 2,000-acre subject should be in smaller units in accordance with the market data, or appraised as a single larger tract containing 2,000 acres to one buyer?;
ii. alternatively, should several scattered tracts within the same general area be combined and appraised as a single property?
The object of this addition to the Forms Library© is to provide the market basis for the selection of the sales used for comparison to the subject. A discussion of the surrounding market sales to address buyer direction and investor attitudes is key to the valuation problem (see comments below the header on this UAAR form page).
5. Data Analysis
There is only one (1) new addition to this section. The "Explanation of Adjustments" is a narrative summary and/or explanation of the adjustments (quantified or unquantified as a percentage or dollar amount) that were identified in the "key valuation factors" for the subject. It may be helpful to place this page facing the "pairing" page to explain or expand the discussion of your conclusions.
6. Approaches
This folder holds the pages necessary to physically appraise a property. There are four (4) new additions consisting of two pages to "compare sale to subject" 1-5 and 6-10 for the Cost Approach and two more pages for the Sales Comparison Approach (Sales 1-5 and 6-10) -- all four pages work alike.
We recommend you use the new "compare sale to subject" page for Cost Approach Sales 1-5 on a facing page across from the "cost grid" listing the same five sales to more completely describe the sale elements by comparison to the subject. When you type a "d" number into the "sale blank" -- the date, price, and price per acre plus comments from the dbase are pulled into the appropriate fields automatically -- then, the appraiser can edit those commits as desired; and then, move to the second half of that particular sale discussion to address how that sale compares to the subject. Looking to the future, each appraiser will likely be more consistent on how the initial portion of the comment section of each sale in the data base is written -- because the first five (5) lines of those comments are pulled into this new page(s).
The pages to be used across from the Sales Comparison grids are shown as "comp sale to subject SCA 1-5 and 6-10. As with the Cost Approach, it may be helpful to place these on facing pages across from the respective grid(s).
7. Assumptions and Limiting Conditions
These pages, one formatted and one blank, were available in earlier versions.
8. Certifications
These pages were available in earlier versions.

Miscellaneous Pages

AgWare has added a few "general" pages to augment, or segregate the appraisal container.

A. Section Divider -- a page which can be used multiple times in each container to segregate the appraisal into sections. Example:

Part I: Introduction
Part II: Factual Data
Part III: Highest and Best Use
Part IV: Approaches to Value
Part V: Reconciliation and Final Opinion of Value
Part VI: Addenda

The appraiser can help the reader by segmenting the report into groups if desired.

B. Exhibit Page - An "exhibit page with no page number" was added to import things such as the section dividers above that were written in Word© or Word Perfect© -- rather than use the "Section Divider" above. Hopefully, the flexibility will allow the user to employ whatever methods they are accustomed to craft their appraisal container. Once designed, you may want to save as a template.
C. Generic "Cover Page" -- Many of the rural properties appraised are not strictly "ag" in nature. This alternative allows the user to simply label the appraisal as "Real Estate Appraisal Report" instead of the traditional "Uniform Agricultural Appraisal Report". The user may elect to call the appraisal "Rural Residential Appraisal" or "Transitional Appraisal Report". There are also eight (8) fields where the appraiser may enter four (4) key points and their respective responses on that page. For example:

Date of Value: January 1, XXXX Date of Inspection: January 1, XXXX
Photographs: January 5, XXXX Assignment/Report: Complete/Summary

Again, AgWare is stressing flexibility to allow use of the form and data base for a wider variety of property types.

Data Base Additions

There have been several "behind the scene" changes or additions to the data base. The primary addition is "save appraisal as a sale". Open a new or blank sale in your data base, then go to "Records", then to "Gather from Report" and the sale will populate -- gathering data from whichever appraisal you have open in the background.

To date, AgWare has not programmed in the opposite direction, or from a "sale to an appraisal report". There seems to be insufficient demand by comparison to the cost of programming this feature.

What’s Planned for the Next Release

What’s on the drawing board for the July-August 2005 release? AgWare is re-designing the SARR© to once again allow for "divergency" reviews. If you recall, that was available on the very first SARR©, but we had several complaints that the second and third divergency reviews were seldom undertaken -- so, we removed those in the late 1990’s version. Due to new input, we are putting part of that ability back, i.e., a single form to permit two divergency reviews are now planned for the mid-2005 release.

Our largest undertaking for the mid-2005 release is a total "re-write" of the data base. We have hired an in-house programmer and are designing a three-step data base for the:

1.) single user;
2.) small office group, and the;
3.) corporate/company version.

AgWare hopes this is a helpful overview of this release. There may be items not addressed, but sort through the folders, possibly print a hard copy of each page, and place the pages in hard-file for review -- especially for the new user. Crafting templates, cell responses, and personalized formatting should reduce the time necessary to complete your report.

Thank you for your continued support and enjoy the 2005 version.

John Widdoss, President

Jerry Kjerstad, Vice President

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