Market Analysis Specifications.docx
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- Market Analysis for Grassland Reserve Program
- Solicitation number
- AG-8B05-S-10-0010
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Statement of Work for Grassland Reserve Program Market Analysis
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| File | Type | Posted |
|---|---|---|
| SF 1449 AG-8B05-S-10-0010.pdf | ||
| AG-8B05-S-10-0010.rtf | RTF text file | |
| SF1199A.pdf |
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ATTACHMENT A
AG-8B05-S-10-0010
Market Analysis Specifications Natural Resources Conservation Service Grassland Reserve Program (GRP)
1. SCOPE
An independent real estate appraiser licensed and registered in the State of Colorado where the market analysis is to take place or a real estate professional will complete the market analysis for the Natural Resources Conservation Service (NRCS). The independent real estate appraiser or real estate professional must have at least 10 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 will consist of performing all computations and descriptions required by this specification.
2. QUALITY OF WORK
The market analysis must be clear, accurate, complete, and meet the intent of NRCS to obtain an opinion of the fair market value of the land minus the grazing value. The GRP market analysis is designed to investigate and document factors that determine demand for grassland, the supply of competing grazing lands, and the geographic boundaries of the trade area. Demand and supply are examined at a geographic scale, location, and relevant time horizon determined by the appraiser or real estate professional.
3. SELECTING COMPARABLE PROPERTIES
Important considerations in the selection of comparable properties include the following:
(i) Sale prices far above or far below the bulk of the group are suspect. There are likely valid reasons for the divergence.
(ii) Justify comparable sales not used. (Comparable sales should be drawn from throughout the market area being analyzed.)
(iii) Use comparable sales that are not too old. Stay in as current a time frame as possible.
(iv) Use similar property types as much as possible.
(v) Ensure comparable sales are actually arm’s length transactions.
4. ADJUSTING VALUE FOR PROPERTY DIFFERENCES
| (i) | When comparing similar properties, there are always differences. Be sure to adjust comparable properties for differences: | |
| a. Add or subtract value for differences in size. | ||
| b. | Add or subtract value for feature differences, such as improvements (fences, ditches, water supply, etc.). | |
| c. | Add or subtract value for location differences, including access. | |
| (ii) | 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 | |
| (i) | Sold Listings—These are the actual comparable sales. Sales data should be from October 2008 to the present. | |
| (ii) | 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. Sellers can ask any price they want for their property; it doesn’t mean the prices are realistic. | |
| (iii) | 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. | |
| (iv) | Off-Market, Withdrawn, Cancelled, or 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 term “market area” is defined as the geographic region from which the majority of demand for GRP easements comes and in which the majority of grasslands are located. Market area will be determined by the appraiser or real estate professional based on market data.
Geographic region is the State of Colorado.
7. OTHER CONSIDERATIONS
(i) Highest and Best Use
(ii) Development pressure.
(iii) Land use, land quality, soils, and topography. The land uses and land types to be considered must be those that are typically enrolled in GRP in the State of Colorado.
8. PRESENTATION OF ANALYSIS
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 to allow the analysis to be reviewed and critiqued. Only areas with adequate grazing land market data will be included in this market analysis.
9. DELIVERABLES
The final report 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, or business associate, or have a financial interest in the property to be covered by the proposed easement.
11. NONDISCLOSURE
Work performance required by this scope of work 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. Section 552a. Additionally, the contractor’s employees must 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 (Public Law 1078-171).
12. CIVIL RIGHTS AND PROGRAM DELIVERY
The contractor must 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.
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