Exercise 26: New House Negotiation
DISCUSSION QUESTIONS:
1. What goals (target price, opening bid, bottom line, etc.) did the seller(s) and buyer(s) set for themselves in the negotiation? Did they reveal these goals to their agent?
The goals of the buyer were not obviously revealed; because I was the seller I did know that my priorities and bottom line was set and that even though the seller was unable to pay two mortgages if the offer was not fair, then we would have to walk away.
2. Did you reach agreement? How easy was it to achieve this agreement?
Yes we did reach an agreement. We settled for 235K with no closing costs involved. The buyer would take over the payments of the house and the additional 45K is to be established through an additional loan.
3. What negotiation strategies were primarily used by each party? Were they effective?
The negotiation strategies used by the seller were anchor and adjustment strategies. Even though the buyer came with his bottom line he had not actually met my starting point.
The negotiation strategy of the buyer was a bit too confident. His first offer was a bit condescending at first but after I found out he had children I had to reevaluate and soften the atmosphere a bit by asking questions about the family and adjusting the offer price and offering closing costs to get to the price I needed.
4. How much trust was there between each of you during this process?
I believe there was trust. Due to the fact there was not any hostility I expressed reasoning for needing a quick close and he gave concessions and I gave concessions.
5. Did communications break down at any time between you and the other party?
What cause the breakdown? At first communications were close to breaking down when I felt that his bottom line was a bit low…. But I soon realized that it was a strategy and that I probably would do the same thing, just knowing they would
1. What goals (target price, opening bid, bottom line, etc.) did the seller(s) and buyer(s) set for themselves in the negotiation? Did they reveal these goals to their agent?
The goals of the buyer were not obviously revealed; because I was the seller I did know that my priorities and bottom line was set and that even though the seller was unable to pay two mortgages if the offer was not fair, then we would have to walk away.
2. Did you reach agreement? How easy was it to achieve this agreement?
Yes we did reach an agreement. We settled for 235K with no closing costs involved. The buyer would take over the payments of the house and the additional 45K is to be established through an additional loan.
3. What negotiation strategies were primarily used by each party? Were they effective?
The negotiation strategies used by the seller were anchor and adjustment strategies. Even though the buyer came with his bottom line he had not actually met my starting point.
The negotiation strategy of the buyer was a bit too confident. His first offer was a bit condescending at first but after I found out he had children I had to reevaluate and soften the atmosphere a bit by asking questions about the family and adjusting the offer price and offering closing costs to get to the price I needed.
4. How much trust was there between each of you during this process?
I believe there was trust. Due to the fact there was not any hostility I expressed reasoning for needing a quick close and he gave concessions and I gave concessions.
5. Did communications break down at any time between you and the other party?
What cause the breakdown? At first communications were close to breaking down when I felt that his bottom line was a bit low…. But I soon realized that it was a strategy and that I probably would do the same thing, just knowing they would