Washington Market Analysis SOW.doc

Market Analysis Specifications

Natural Resources Conservation Service Washington Wetlands Reserve Program

1. SCOPE

An independent real estate professional, such as an agent, broker or appraiser licensed and registered in the state where the market analysis is to take place shall complete market analysis for the Natural Resources Conservation Service (NRCS). The independent real estate professional shall have at least five years of experience and be knowledgeable of the dynamics of land sales in the specific area of the market analysis in order to make required judgments based upon the data available. The work shall consist of performing all computations and descriptions required by this specification.

2. QUALITY OF WORK

The market analysis shall be clear, accurate, complete, and meet the intent of NRCS to obtain an opinion of the fair market value of land.

3. SELECTING COMPARABLE PROPERTIES

Important considerations in the selection of comparable properties include:

a. Sales far above or far below the bulk of the group are suspect. There are likely valid reasons for the divergence.

b. Justify comparable sales not used.

c. Comparable sales should be drawn from throughout the region being analyzed.

d. Use comparable sales that are not too old. Stay in as current a time frame as possible.

e. Use similar property types as much as possible.

f. Ensure comparable sales are actually Arms Length transaction.

4. ADJUSTING VALUE FOR PROPERTY DIFFERENCES

a. When comparing similar properties, there are always differences. Be sure to adjust comparable properties for differences:

b. Add or subtract value for differences in size.

c. Add or subtract value for feature differences such as improvements such as fences, ditches, water supply, etc.

d. Add or subtract value for location differences including access

e. Look at financing differences that could have influenced sale price. Seller financing can at times result in a higher price paid for a property that is not related to its true value

5. CONDUCT A CURRENT ANALYSIS OF THE COMPETITIVE MARKET

a. Active Listings. Active listings are properties currently for sale. These listings matter only to the extent that they indicate the competition for buyers. They are not indicative of market value. Because sellers can ask anything they want for their property, it doesn’t mean the prices are realistic.

b. Pending Listings. Pending Listings are formerly active listings that are now under contract but have not yet closed. Pending sales indicate the direction the market is moving.

c. Sold Listings. These are the actual comparable actual sales. Sales data should be from October 2007 to the present.

d. Off-Market/Withdrawn/Cancelled/Expired. These are properties that were taken off the market for a variety of reasons. The median price is almost always higher than the median price of comparable sales.

6. MARKET AREA

The Market Area is divided the following three areas: West Area to include Whatcom, Skagit, Snohomish, Clallam, Jefferson, Grays Harbor, Mason, Kitsap, King Pierce Thurston, Pacific, Lewis, Clark, Cowlitz, Wahkiakum, and Skamania counties.

The Central Area to include Okanogan, Douglas, Chelan, Kittitas, Grant, Benton, Yakima and Klickitat counties.

The East Area to include Ferry, Stevens, Pend Oreille, Lincoln, Spokane, Adams, Whitman, Garfield, Franklin, Walla Walla, Columbia and Asotin counties.

7. OTHER CONSIDERATIONS

a. Land use: Rangeland, Cropland and Pastureland.

b. Improvements: Do not include the value of improvements such as homes, sheds, barns, etc.

c. Levee protection: Where significant, separate values should be developed for land behind federal protection levees.

d. Existing easements: Do not use sales data from lands under existing easements as comparable sales.

e. Development pressure.

f. Highest and Best Use.

8. PRESENTATION OF ANALALYSIS

The report should include the land use in each area as described above. The report should be presented in a neat easy to read format free of grammatical and clerical mistakes. The supporting documentation should also be presented with sufficient narrative so that the analysis can be reviewed and critiqued.

9. DELIVERABLES

The final summary report, individual property values of each land use and supporting documentation are the deliverables for this assignment.

10. CONFLICT OF INTEREST

An independent Real Estate professional will not analyze a property for a spouse, child, partner(s), or business associate(s), nor have a financial interest in the property to be covered by the proposed easement.

11. NON-DISCLOSURE

Work performance required by this SOW will involve access to potentially sensitive information about governmental and landowner issues. All Contractor personnel must comply with the terms of AGAR 452.224-70, Confidentiality of Information, as well as provisions of the Privacy Act of 1974, 5 U.S.C 552a. Additionally, the Contractor’s employees shall comply with privacy of personal information relating to Natural Resources Conservation Service programs in accordance with Section 1244 Title II of the Farm Security and Rural Investment Act of 2002 (P.L. 1078-171).

12. CIVIL RIGHTS AND PROGRAM DELIVERY

The Contractor will ensure that personnel prohibit discrimination in all aspects of programs and activities related to the Contract on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status.