Required 1000 words You and your family have moved from Abu-Dhabi to Dubai, you

Question

Required 1000 words

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.

.

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

Here in this deal we can use two negotiation approaches first is Win win approach and second is Compromise approach. We will review this one by one.

1. Win win approach- It is the most superior approach, if anyone follows it result into get feel for both the parties that they are achieving what they desire.In our case we first put our offer price before them with very reasonable price. Then we will have to justify why the offer price is reasonable. For instance we need to give him some average insight into our price calculation research. After this we need to convey the how they goona achieve benefits through this deal. What coopration they gonna get, adding some mutual benefits of the deal etc.

At last if they insist for the price rise we can give some example of deal which are happened recently and show them that we have offered some extra price than that. Overall objective to make them feel confortable with our price.

2. Compromise Approach- It is the approch when both the parties feel that it is impossible to achieve what we determined at earlier stage. The reasoans may be different, will change as per the situation. Then obiviously both will try to settle the deal less than what they pre decided.

In our situation first we need to convince him that what they are asking is impossible to happen. Then offer our price proposal gentaly with proper reasons why we should opt for it.Overall objective is to convince them this is best deal for both of us at this point of time.

In this deal the broker has more power than us. Because broker is the person who has more knowledge and experiance in this kind of cases, more habitual for him than of us to convice.

Our strategy will be that our side is to be presented by broker. Before the main meeting we will discuss with brocker what we have to achieve, what dara to be present in meeting, the price offering then to bidding for the price up what extent etc.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.