You and your family have moved from Abu-Dhabi to Dubai, you are living now in a
ID: 354835 • Letter: Y
Question
You and your family have moved from Abu-Dhabi to Dubai, you are living now in a month-to-month rental and have finally found the perfect house to buy, where it is near from the school and the market, and is in a nice neighborhood. Unfortunately, the seller is being un-reasonable. The house is on the market for 600,000$, but your research backed up by your broker’s opinion, tells you it is overpriced. And by your estimate a fair price would be around 500,000$, but when you offered that amount, the broker told you that you are not even close.
Required ( The Answers should be computerized - please answer in Details)
Q.1 what negotiation approach you will follow with him in negotiating this deal? If different kind of approaches, mention and describe each one of them.
Q.2 who has more power in this negotiation? What strategy and tactics you will follow and use? Describe both the process and include what do you think your BATNA is.
Explanation / Answer
1.I would use integrative type of negotiations which would create a Win-Win situation for both the broker and me as it is important for us to buy that perfect house which is near the school and market and is in a nice neighborhood. Best type of negotiations would create value for both the party and the negotiation would have a collaborative and cooperative approach towards arriving at a final value of the house.
2. The broker has more power in this negotiation. Initially I will negotiate with the broker for the fair price of 500000$ and if he does not agree I would negotiate for the price of 550000$.My BATNA
Best alternative to the negotiated agreement would be negotiating the price of 525000 to purchase the house.
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