Reflection

Reflection 1: Hamilton Real Estate Zhang, Jiong (Joey) 1155056333

In the first case of negotiation, I took the buyer's role as the CEO of Estate One. Before attending to the negotiation, I read carefully the story background from the confidential material Professor handed out, trying to know well about the information about my side, the other side and the environment in advance, to hold a favorable position during the negotiation.

According to material, there is only one item, price, need to be discussed. As a buyer, I was aware of that the value of property for commercial use is 66M, and the alternative investment profit is 6M. Obviously, it was a good transaction if I can obtain Hamilton property no more than 60M. Actually, I was very happy in my heart when the seller told me the first offer is 50M. I was holding my excited emotion and replied my first offer "40M", which is the average price of recently published comparable price for the properties in this area. After that, the seller tried to settle the price at 48M, because we all knew that if the land was used for the construction of luxury condominiums once the zoning laws did not prohibit commercial development. Indeed, my company had the reputation of luxury condominiums construction, and had strong political ties in the local government, so I knew that it would come true in the near future. However, in order to lower the price as far as I can, I did not kindly tell the true to the seller. Instead, I said that my company would like to enter residential market due to some bottleneck met in luxury condominiums market and definitely the Hamilton government can not allow us to do commercial real estate development. As such, finally, we settled the price at 43.5M.

When reviewing this negotiation process, I found it was very surprise that the final price is extremely closely to the left end of ZOPA, which showed that I did a good job as the buyer. I think it may caused by I made a...