Blog post #3

An example of a real world negotiation could be buying a house. I am imagining that my family and I are looking to buy a new house in a new neighborhood. I research the web for listings in an area I am attracted to. I schedule an appointment for my husband and I to go look at a house i am interested in buying. The house is originally listed for $600,000 which I think is very over priced. Due to my research and my brokers opinion the house could be sold for $500,000 instead of $600,000. So, after we look at the house I tell the seller I am willing to pay $500,000 for it. The seller is taken back and does not want to take my offer because they think it is worth well above $500,000. Now I will have to negotiate a price that will keep me happy and the seller happy.

Negotiation Checklist:
1. My overall goal is to purchase my perfect dream house
2. The issue is I think it is priced higher than it should be.
3. This is the only issue and is important to me because I am on a budget/have a set budget for my house.
4. My best alternative to a negotiated agreement is raising my price to $525,000 to see if the seller will accept that price.
5. My resistance point is $550,000.

1. The issue of the seller is I am offering to buy a $600,000 listed house for $500,000.
2. The sellers BATNA is to drop the price to $570,000
3. The sellers resistance point is $562,000.
4. My target is to get the seller to drop the price to $552,000.

1. The deadline is that another buyer could buy the house for the listed price. The seller is more impatient because they want the price they are asking for.
2. Once the seller commits to a specific buyer the seller can not legally sell the house to another buyer willing to pay more than me.
3. I want to avoid them asking me to look at a different house that is cheaper. If they ask anyway I will tell them I want this house and I have done research on why it is not worth $600,000.

1. The negotiation process will most likely be repetitive because myself and the seller are set on what we want. I need to prove to them why the house does not need to be sold at $600,000 and expose them to the research I have done and what my broker told me it should be listed at. Since I am willing to negotiate a price I will first offer my BATNA to the seller and see what their response is.
2. I can trust this seller because they have good reviews and sold a house to a friend who negotiated a price with them as well.
3. The seller is known to be stubborn and will not drop the price right away, I will need to fully convince the seller before they drop the price.
4. The limits that the seller has to keep in mind is how much work has been put into the house and how it equals out to the price it should be sold for.
5.  If we can not make a negotiation the day we view the house I would like to set up another meeting for us to talk about it and maybe reorganize the prices and alternatives.