Negotiation case - Selling House

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<ul><li><p>7/28/2019 Negotiation case - Selling House</p><p> 1/18</p><p>IDENTFYING&amp;IMPROVINGOURBATNA</p><p>SYNDICATE2</p><p>29111311HaidirAfesina(fezi) </p><p>29111328HendraWinata </p><p>29111329MitaListyatri </p><p>29111338AndekPrabowo29111344AprianEkaRahadi </p><p>29111384ChairunnisaMirhelina</p><p>29111387FranciscusXaveriusKresnaPaska </p><p>29111393AgungIndriPramantyo</p><p>MM5010StrategicDecisionMakingandNego\a\on</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 2/18</p><p>SELLER</p><p>29111328HendraWinata 29111329MitaListyatri </p><p>29111393AgungIndriPramantyo</p><p>BUYER</p><p>29111311HaidirAfesina(fezi) 29111338AndekPrabowp </p><p>29111384ChairunnisaMirhelina</p><p>29111387FranciscusXaveriusKresnaPaska</p><p>Near Hastings &amp; Centennial parks</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 3/18</p><p>Casesynopsis</p><p>SELLER</p><p>Lis\ng#9013878:$240,000</p><p>Directselling(NOAGENT)</p><p>Onemonthonthemarket</p><p>OneofthenicesthouseintheCentennalParkarea</p><p>Originallypurchased$155,000</p><p>Descrip\on</p><p> Builtin1947 1846squarefeetofspace</p><p>InsideAmeni\es</p><p> Largeeatinkitchenwithallappliances Newlydecorated</p><p>OutsideAmeni\es</p><p> Detachedgarage(2.5cars) Restaurants&amp;transporta\onwithinwalking</p><p>distance</p><p> NearHas\ngs&amp;Centennialparks</p><p>BUYER</p><p>Submiedoffer:$220,000</p><p>Rentforfewyearsandthenresellataprofit</p><p>LookingforsinglefamilyhomeinCenterville</p><p>Priceofneighboringhomeswithsimilar</p><p>characteris\c:</p><p>Lis\ng# SellingPrice SquareFeet</p><p>8906898 $213,300 1715</p><p>8904725 $233,600 1875</p><p>8908614 $239,600 1920</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 4/18</p><p>BARGAININGZONE</p><p>BuyersReserva\onPrice</p><p>$235,000</p><p>BuyersAspira\onPrice</p><p>$220,000</p><p>BUYER</p><p>Sellers Reservation Price$225,000</p><p>SELLER</p><p>Sellers Aspiration Price$240,000</p><p>Z O P A </p><p>$225,000$$235,000</p><p>BATNABUYER=Willingnesstobuyi.e.theonlybuyerwhocomeina</p><p>month</p><p>BATNASELLER=Futureprospectoftheareai.e.strategicloca\on</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 5/18</p><p>Lis\ng# SellingPrice SquareFeet Price/Squarefeet</p><p>8906898 $213,300 1715 124.4</p><p>8904725 $233,600 1875 124.6</p><p>8908614 $239,600 1920 124.8</p><p>AVERAGE $228,900 1837 124.6</p><p>Remark SellingPrice/squarefeet Sellingprice@1846square</p><p>feet</p><p>Average 124.6 $230,000</p><p>Seller#9013878 130.01 $240,000</p><p>#1.Priceofneighboringhomeswithsimilarcharacteris\c:</p><p>BUYERPERSPECTIVE</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 6/18</p><p>#1.5ALTERNATIVESIFNOAGREEMENT</p><p>BUYER</p><p>1.Renttoown/Leaseop\on</p><p>2.rentotherhousessurroundit</p><p>3.Askinghelpfromanexper\seorcommunitytoiden\fytheseller`sauthority/decisionmaker</p><p>4.Sharedownershipwithfamilyorfriendi.e.5050</p><p>5.Alliancewithpowerful&amp;influencedpeopleororganiza\on</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 7/18</p><p>http://public.rpl.herorentals.com/RPL/search/USA.index.mvc?page=results</p><p>Bedrooms: 1 Bathrooms:1 Monthly Rent: $ 500Date Available: June 8th, 2009</p><p>Lease Info: 6 months/12 monthsApplication Fee (Standard): $ 38Pets: No PetsParking: 1 car carportFireplace: No fireplace</p><p>Approx Square Feet: 600 Dwelling Type: Single family</p><p>Near Hastings &amp; Centennial parksStrategic locationBigger house</p><p>MarketResearch</p><p>Based in Hostede, the Americanpeople are individualism, means theneed of individual treatment forpersonal approach in order to</p><p>convince to sell to us</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 8/18</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 9/18</p><p>#3.2BUYERIMPROVINGBATNA</p><p>Arrangementwithsupplier,partnersorcustomer</p><p>1.Cer\fiedhomeinspector2.Buildrela\onship(personalemo\onal)withsellerandcommunitysurroundthe</p><p>areai.e.toiden\fytheseller`sauthority/decisionmaker</p><p>3.Offerreleaseclausetotheseller</p><p>RemoveanyconstrainsthatweakenBATNAOfferreleaseclausetothesellerBycheckingpoten:allyrelevantbusinessfutureandnego:atedwiththesellerthe</p><p>percentageofsharedprofit</p><p>Changetermsofnego\a\onGethomeinspectedandappraised</p><p>Regardlessofitsnewameni:esandfurnished,thebuildingisold.Theinspector</p><p>wouldcheckifthereisanytermites,anytermitedamage,houseelectricalsystem,</p><p>plumbingandalsohealingandcoolingsystem.Thusthepricewilldependonthe</p><p>report. </p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 10/18</p><p>#4.NEWBATNAIFSUCCEEDED</p><p>BUYEROfferedreleaseclauseagreementRegardlessofagreeingthepricethatsuitstobuyer,itisbelieved</p><p>thatthesellerwouldbeinterestedashewouldgettheshared/</p><p>commissionforthenextsalesasbuyerwillsellagainthehouse.However,onlyifthereleaseclausemet.</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 11/18</p><p>#4.BUYERNEWBATNAIFSUCCEEDED</p><p>Reserva\onPrice</p><p>Aspira\onPrice</p><p>NewBATNAValue</p><p>BUYER $235,000 $220,000 Avg.HomePrice**</p><p>($DecreaseFactorfrom</p><p>Nego:a:on)+($commissionforNext</p><p>SalestoExis:ngSeller)</p><p>($NetProfitfromNext</p><p>Sales)</p><p>** Buyer: 230,000</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 12/18</p><p>#2.Mathema\cal</p><p>(18751846)/(18461715)=(124.6X)/(X124.4)</p><p> 29/131=(124.6X)/(X124.4)</p><p>29X3607.6=16322.6131X</p><p> 160X=19930.2</p><p> X =124.56(Averagesellingpersquarefeet)</p><p>SELLINGPRICE=1846x124.56=$229,937</p><p>SELLERPERSPECTIVE</p><p>Lis\ng# SellingPrice SquareFeet Price/Squarefeet</p><p>8906898 $213,300 1715 124.4</p><p>#9013878</p><p>SellerHouse</p><p>? 1846 ?</p><p>8904725 $233,600 1875 124.6</p><p>8908614 $239,600 1920 124.8</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 13/18</p><p>#1.Mathema\calforHomePriceApprecia\onRate</p><p>Assump\on: CentervillelocatednearDC(virginia)</p><p>Source:hp://www.forecastchart.com/homepricesdc.html</p><p>BaseYear=240,000/(100%+AverageHomePriceApprecia\onRate%)</p><p>AssumeSeller&amp;Buyeragreewithprice$240,000,wherethebasepriceis$239,497usinglastyear</p><p>data,Sellergetaround$503</p><p>ButifSelleragreewithprice$229,937wherethebasepriceis$239,497usinglastyeardata,Seller</p><p>lostprofitopportunityaround$9,560</p><p>Last10year Last5year LastYear LastQuarter</p><p>AverageHomePriceApprecia\onRatein</p><p>DCfrom2012</p><p>24% 12% 0.21% 1.04%</p><p>BasePriceusing1YearForwardUsing</p><p>Price(Apprecia\on)</p><p>240,000 193,548* 272,727 239,497 237,530</p><p>SELLERPERSPECTIVE</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 14/18</p><p>#1.5ALTERNATIVESIFNOAGREEMENT</p><p>SELLER</p><p>1.Rentedthehousetobuyer</p><p>2.Marke\ngstrategyi.e.STP</p><p>S:middleclass</p><p>T:singlefamilyP:investmentforan\queloversclub</p><p>3.Marke\ngtac\ci.e.Adver\sing</p><p>ATL:Property&amp;businessmagazine</p><p>BTL:Socialmedia&amp;community(WOM)</p><p>4.Buyerassistedfinancingfromselleri.e.50%cashdeposits,5%interest,10years(nego\able)</p><p>5.Runningbusinessopportunityi.e.guesthouse</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 15/18</p><p>#2.BESTALTERNATIVESIFNOAGREEMENT</p><p>SELLERRunbusinessopportunity1. Posi:ve(guesthousenearbyhas:ngandcentennialparks)2. Nega:ve(conspiringwithhisneighborsaroundtoofferhigher</p><p>abovenormalrates(1.5:mes)toboostthemarketprice</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 16/18</p><p>#3.SELLERIMPROVINGBATNA</p><p>Arrangementwithsupplier,partnersorcustomer</p><p>1.Homeinsurance2.Buildrela\onshipwithcommunitysurroundthearea</p><p>3.Posi\onedasan\quehistoricalvaluei.e.investment</p><p>4.Adver\sement(ATL&amp;BTL)</p><p>RemoteanyconstrainsthatweakenBATNA1.Homeinsurance2.Assessbusinessopportunitywithbusinessen\tyarounde.g.ShoppingCenter,</p><p>Restaurant</p><p>Changetermsofnego\a\on1.Priceexpira\on</p><p>2.Askcommissionpercentageifbuyerwanttoresalethehouse</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 17/18</p><p>#4.NEWBATNAIFSUCCEEDED</p><p>SELLER</p><p>RunbusinessopportunityBased on Seller calcula.on on slide 6, Seller will lost profit opportunity</p><p>$9,560 if Agree the sales cost of $229,937 to Buyer or below $239,947</p><p>Thereforeweprefertokeepthehouseandrunbusiness</p><p>e.g.runningaguesthousetoimproveSellerBATNAwhilewaitforapprecia:onRatefromthehousepricewhichhasincreasedtrendin</p><p>DCarea</p></li><li><p>7/28/2019 Negotiation case - Selling House</p><p> 18/18</p><p>#4.NEWBATNAIFSUCCEEDED</p><p>Reserva\onPrice</p><p>Aspira\onPrice</p><p>NewBATNAValue</p><p>SELLER $225,000 $240,000 Avg.HomePrice*+</p><p>($Rent/year)+($Home</p><p>Apprecia:on/year)</p><p> Seller: 229,937</p></li></ul>