Negotiation Tactics for New House

Sofia Alvarado

MAN4441

The New House Negotiation.

In this negotiation exercise I was the buyer’s agent. I learned about what an agent is, what different situations I should use and agent in, and when I should negotiate for myself. An agent is someone who is payed to negotiate on behalf of the buyer or seller and collects a commission based on the deal they made. I learned that I should use an agent when I’m emotionally attached to a property because it could be hard to negotiate for something that I think has more value than it actually does. I also learned that I should not use an agent when I believe I am a better negotiator than the agent and want to be directly involved in the negotiating process. I should also not use an agent if I feel that I have more knowledge on the property than the agent himself. If I feel that I can get a better deal than the agent can get for me than I should definitely not use an agent to negotiate. Agents have a lot of power to negotiate but I learned that what they cannot do is make a deal without you (the buyer) agreeing to it. The agent has absolutely no authority to make a commitment without the principals (buyers, sellers) consent.

The purpose of this negotiating exercise was to provide a challenging negotiating situation by using agents that required us to gather facts about the new house, decide on a strategy we were going to use to negotiate, and finally to implement the strategy we picked. The negotiation was about the sale and purchase of a new house, a transaction that is normally performed through agents in the real world. There were three rounds in this exercise and the roles that were assigned were randomly selected by cards. First the buyers and sellers agents talked to their clients, and then both the buyers and sellers agents negotiated with each other to let each other know what the other party wanted. By the end of the third round each agent meets with their principal to announce whether or not the other part...