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.

Post #2

A time I used the competitive strategy is obviously when playing sports. I played lacrosse for most of my life and have always been very competitive. In fact, in high school I lost a friendship over competitiveness when it came to lacrosse. We both were best friends and played on the same high school and club team. During this time we were both trying to get recognized by colleges to be recruited. It became a huge competition and would get very heated at some points. It lead us to separate and not be close anymore which is something I really regret. Another time my competitive side comes out is when my boyfriend and I are in activity competitions with our apple watches. We both get super competitive and try to beat each other. I have also used the collaborative strategy with my roommates from school plenty of times when it comes to cleaning and taking out the trash. No one wants to take the trash out especially my roommates! I was getting tired of taking it out all the time and arguing with them about it. So, we collaborated and decided to make a trash chart and keep track of who takes it out and take turns while doing it. It was a win win situation. I felt as if I was always taking it out and they felt that they were always taking it out. By using this chart we were able to document it so it was fair.

Post #1

When doing the used car negotiation in class I had to sell my used 2010 Pontiac vibe. I was in the process of buying a new Acura from a dealership and the down payment for it was roughly around $8,500. I first offered my aspiration price to my buyer at $9,000. She declined my offer because of her money situation and another offer on the table she had. After that decline I offered her a bargaining range of $8,500. She did not agree with this price because she did not have the money for it. After this i told her my reservation price was $8,000 and I would throw in a new car freshener. I also had asked her questions about the other offer she had and attempted to get as much information about that car as I could. She explained to me that the other offer was an old Jeep Cherokee that was not in very good condition and would most likely not last in the long run. This is when I used the "Bring Up Future Needs" tactic. After lowering my price to the lowest amount and hearing about her other offer I was able to bring up the fact that if she needs a car and wants it to last for her my Pontiac Vibe would be the best decision. My car is in good condition and only has 51,000 miles on it whereas the Jeep has well over this amount of miles. I convinced her to save up money for a vacation in the future and to purchase my car today because it was something she needed and would last her a while. I asked her to prioritize a vacation or a car and which one she needed more. Obviously she had choose the car because that's an every day necessity for most people. We closed our negotiation on $8,000 which worked out for me and she got a car that would last her for awhile. The things I found difficult while participating in this negotiation was trying to come up with solutions around her problems. For example, she had another offer from someone else and really wanted to go on a vacation that she was saving up for. She also had a spouse that was concerned about how much she would spend. In a way I almost felt bad for her because she was obviously low on money and had other expenses to worry about. This is what lead me to drop my price by $1,000 and keep $8,000 as my resistance point because I had to be smart with my money issues as well.