Verified Document

Negotiations Recent Negotiations Took Place Regarding A Term Paper

Negotiations Recent negotiations took place regarding a house purchase and sale. The negotiators were myself, my agent, the house sellers and their agent. Each of the stakeholders in this particular situation had certain, biases, beliefs, concerns, goals and objectives. I had been looking for an investment property that I could fix up, reside in, and then sell in 3-5 years for a tidy profit. After a number of weeks of searching for just the right property, I finally found what I was looking for; a nice three-bedroom, two-bath property sitting on approximately a 1/2 acre with a double-car garage located on the outskirts of town. The residence was 20-years old and needed some work to bring it up to standard. The asking price for the entire property was $499,000.00.

The first thing that I wished to affirm was the comparable pricing in my specific marketplace. I asked my agent to run a Comparable Market Analysis (CMA) as suggested by the Home Buyers Information website (Home, 2011). What I discovered was that comparable sales in my market were priced approximately 15-25% less than what the owner was asking. I knew that preparation was the key to any successful negotiation, and therefore I knew that I had to determine what made the owners believe that their home was worth so much more than other recently sold residences in that area. Having access to a CMA also provided evidence that hiring an agent of my own was another preparatory move that had been beneficial.

Initially, I wondered if hiring a buyer's agent would be worthwhile. After all, I would be throwing one more bias into the negotiations; that bias would of course be that the agent (no matter how much they protest otherwise, they are all motivated by gaining commissions)...

The CMA however may have ended up saving me some substantial dollars, ergo, it was likely a good idea.
My agent also provided me with a list of the amenities that came with the house, things such as the two fireplaces, the gazebo off the deck, the double thick windows that cut down on energy use, the new heating/cooling system and a new roof. Those items would all factor into the price of the house. I decided that an anchor offer of $405,000 would be a good starting point. My offer was based on the considerations of the new heating and cooling system as well as the new roof coupled with the thought that comparable houses sold in the $375,000 to $410,000 range. The owners of the house were motivated to sell having already purchased and moved into another residence out of state, which also played into my considerations.

My main worry was still why the owner's believed that the house was worth so much more than other houses in the area. According to Dottie Reuning one of the things a buyer should not present to the seller (or to anyone for that matter) is the fact that there is substantial buyer interest in the property (Reuning, 2011). Keeping Reuning's advice in mind, I did not wish to project my enthusiasm for the property in an evidentiary manner, so I decided to do some detective work on my own. I discovered two interesting items about the property; 1) that it had been in the owner's family for at least two generations, 2) that when the owner's inherited the property the estate had valued it at just over $500,000.

These two items provided me with…

Sources used in this document:
References

Home Buyers Information Center (2011) accessed at:

http://www.ourfamilyplace.com/homebuyer/negotiation.html

on April 2, 2011

Reuning, D.L (2011) Tri-City Homes for Sale, accessed at:
http://www.3cityhomes.com/buyers-negotiation-tactics.php
Cite this Document:
Copy Bibliography Citation

Related Documents

Negotiations the Order in Which Things Are
Words: 1031 Length: 4 Document Type: Essay

Negotiations The order in which things are said is almost as important as what is said, and in some cases it is even more important. This has been a long-recognized fact in the world of rhetoric and basic composition from time immemorial. It is only relatively recently, however, that this fundamental truth has been explicitly and consciously explored in the realm of negotiating and information strategy. The additional factor of who

Government Shutdown a Shutdown Furlough Takes Place
Words: 565 Length: 2 Document Type: Article Review

Government Shutdown A shutdown furlough takes place in case of a lapse in appropriations, mostly at the commencement of a fiscal year, where funds have not been appropriated for that year, or when continuing resolution expires, or failing to pass a new continuing resolution or appropriations law. Whenever a shutdown furlough exists, agency affected is forced to shut down all the activities that are funded by annual appropriations that the law

Negotiation Wal-Mart - Procter and
Words: 3751 Length: 12 Document Type: Thesis

They both serve the purposes of the stakeholder category formed from clients, they just do this with different understanding. Then, the well-being of the stockholders was constantly on the minds of the negotiating CEOs at Wal-Mart and Procter and Gamble. In this order of ideas, all their endeavors were focused on increasing shareholder value. Basically, this materialized in an ongoing desire to increase profitability. Higher profits would result in larger

Negotiation Stories: Lessons Learned Negotiation
Words: 9576 Length: 30 Document Type: Professional Writing

While Cadbury was initially vulnerable resulting in this take over, Kraft had to borrow heavily to afford the final price of 850p per share. In the coming months and years, Kraft will have to balance against recovering the money put into this acquisition (Wiggins, 2010). A risk, many British politicians and citizens alike fear will mean the end of their signature chocolate in an effort by Kraft to increase

Negotiations Tendering Partnering for Innovation
Words: 6415 Length: 19 Document Type: Term Paper

They may have different ideas and strategies on how the work should be performed. There is a fine distinction between competition and cooperation (Porter and Fuller, 1986). The companies must maintain a balance between the alliances and their own strategic position. The companies must avoid situations where one partner overshadows the other one (Dussauge and Garrette 1995). Borys and Jemison (1989) found that four main factors affect the performance of

Chinese and Canadian Negotiation Styles When Dealing
Words: 3001 Length: 11 Document Type: Term Paper

Chinese and Canadian Negotiation Styles When dealing with businessmen globally, it's critical to be aware of the cultural beliefs and values that shape their negotiation style and business behavior. This is imperative for successful and positive business relationship because not all cultural foster similar beliefs and hence there can vast differences in negotiation styles. These differences become more pronounced as we move from west to east because while most western countries

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now