Negotiation Exercise Essay

1850 Words8 Pages
NEGOTIATION EXERCISE Contract and Procurement Management – PROJ 598 online

DeVry University, Keller Graduate School of Management
November 30, 2013

Negotiation is the process of making amicable decisions between individuals or groups. In this assignment, I will discuss a negotiation that did not result in the best possible solution for all parties. This negotiation was related to my work experience where I was a realtor who was representing a buyer in negotiation of the property’s price, mortgage loan rate and terms. I am a real estate licensee and also a member of National Association of Realtors. I have been practicing my license for seven years now. Seven years of experiences in real estate industry
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From the given situation, I believe that purchase contract negotiation involves clarification and mutual agreement on the structure and requirements of the contract and I acknowledge the positions of both parties to gain the first step of forming the contract. I utilize active listening and collaborative communication techniques at the first stage of forming a contract. These techniques allow me to focus on both sides must recognize basic areas of contract agreement and the importance of other terms and conditions. Two days after the escrow opened, the buyer conducted the home inspection. As the home inspector recommended that the buyer needed to spend addition costs for minors repairs. According to the additional terms conditions, the seller was not responsible for any repairs and the buyer was completely satisfied with the current condition of the property. Two days later, a certified appraiser assessed the property, it valued turned out to be approximately $422,000, which was less than the contracted price. According to the standard terms in California purchase contract, the buyer has the right to renegotiate the purchase price if the appraised value is less than the offer price. In this given situation, the seller was willing to lower the price down to appraised value of $422,000. In the event of the seller wasn’t able to lower the purchase price, then, the buyer has the rights to cancel the contract. However, both parties agreed to draw
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