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Information on Buying a house - relocation purposes?

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Can you provide information on the following: Imagine you are a public administrator who has just been promoted to a higher position but must relocate to another city and purchase a different home. Using the five distributing bargaining skills, present the steps and various aspects you would consider implementing in buying a house.

Answer(s)

Answered by Professional Tutor: Mary

The five distributive bargaining methods (recognize the situation, set a reservation price, use bracketing, use common social norms, and learn the role of framing) can be found here: http://www.prenhall.com/behindthebook/0131868667/pdf/CarrellCh03final.pdf To buy a house, you would use these to first realize that a house purchase is something that is generally open to negotiation. Very few people who sell their homes aren't willing to negotiate the price or other terms. Before you make an offer, determine a price you're willing to pay - and one you will not go above, even by a penny. Then, start with a price (offer) below that amount. Bracketing can be used to form a bracket of numbers between the seller's desired price for the home and the buyer's original offer. Then, the negotiations begin and the final purchase price should fall somewhere in that bracket. Common social norms dictate the majority of the real estate transaction, because there is a method generally used to buy a home. The role of framing is also very important. This is a way to "frame up" the offer to make it look appealing, so it will be accepted by both buyer and seller.

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