CFR > Title 32 - National Defense > SUBTITLE A—Department of Defense > CHAPTER V—DEPARTMENT OF THE ARMY (parts 400 to 668) > SUBCHAPTER J—REAL PROPERTY (parts 641 to 645) > PART 644—REAL ESTATE HANDBOOK > SUBPART F—Disposal (§644.311 to §644.561) > 644.543—Determination of acceptable offers after advertising.

644.543—Determination of acceptable offers after advertising.

(a) Generally an acceptable offer is one which:
(1) Is submitted by a responsible bidder.
(2) Conforms to the Invitation for Bids.
(3) Equals or exceeds the appraised fair market value of the property.
(4) Was independently arrived at in open competition.
(b) A formal appraisal is not required where real property components:
(1) Are to be offered on a competitive sale basis that will adequately test the market.
(2) Are at the same location and are to be sold under a single advertisement.
(3) Have a total estimated fair market value of $10,000 or less for all property to be sold.

Code of Federal Regulations

The determination as to necessity for a formal appraisal because of the $10,000 limitation may be made by an experienced real estate employee who need not be a real estate appraiser. This determination may be in the form of a simple written statement that in the judgment of the signer the property is not considered to exceed $10,000 in value. In these cases, awards will be supported by a determination by the DE that the market was adequately tested, and the price bid reasonable. For the purpose of records and reports, the sale price will be recorded as the fair market value. If it appears the market was not adequately tested, bids
Code of Federal Regulations 301
will be rejected and the property readvertised, or, if time does not permit readvertising, a sale may be consummated using the procedure provided in paragraphs (d) and (e) of this section.
(c) All land, irrespective of estimated value, and all other real property and components with an estimated value in excess of $10,000 will be appraised. Where an acceptable offer, as defined in paragraphs (a) and (b) of this section, is not received for such property as a result of public advertising, it will be readvertised unless the responsible DE determines, based upon written findings which shall be preserved as part of the permanent file, that further public advertising will serve no useful purpose.
(d) Where no acceptable bid is received as a result of the second advertising, or a determination was made that further advertising would serve no useful purpose or is not feasible, the DE may negotiate a sale at the highest price obtainable, provided:
(1) All bids are first rejected.
(2) The total of the appraised value for all property included in any single sales contract does not exceed $1,000.
(3) All past bidders, on any of the items, and any other known interested parties are afforded a fair opportunity to participate in the negotiations.
(4) The sale price is in excess of the highest bid received as a result of advertising.
(5) In his opinion the price is reasonable.
(e) Where the appraised or estimated value of all items to be included in a single sales contract exceeds $1,000, and no acceptable bid is received, the high bidder may at the discretion of the DE be given a reasonable period, not to exceed five working days, to increase his bid. At the same time all other bids shall be rejected and bid deposits returned. If the high bidder increases his offer to an amount equal to the total appraised or estimated value of the items involved, the DE may consummate the sale. All other cases will be forwarded to DAEN-REM together with an opinion as to whether the market was adequately tested and the highest price offered is reasonable, and with recommendations as to the course of action to be followed. If a negotiated sale to other than the highest bidder is recommended, information for preparation of a report to the Government Operations Committees of Congress will be included, as required in paragraph (c)(2) of § 644.544.