Buying House

Utomo S Putro SBM ITB

Buying House_Bargaining Zone (ZOPA)

$235,000 (Br)

$240,000 (St)

$220,000 (Bt)

$225,000 (Sr) ZOPA (Zone Of Possible Agreement)

Discussions
Buyers who get low price
Who opened and at what price? What was the responses? How many offers and counter offers were there?

Who should open in a distributive negotiation?

Pros of opening? Cons of opening?

Is there any other way to negotiate distributively other than starting high if you are the seller and low if you are the buyer, and negotiating until either you reach your RP, at which point you exit, or reach agreement?

Buying a House Comparative Data

Buying a House N = 204 Buyer-Seller Pairs, Undergraduate and MBA Students
100

Frequency

80 60 40 20 0 $225K $226K $227K $228K $229K $230K $231K $232K $233K $234K $235K Price

Data provided by David Glew, Assistant Professor of Management, University of North Carolina Wilmington, 2007