LEARNING EXERCISE: BUYING A HOUSE
Yes, this is definitely a distributive bargaining situation. Base on my opinion, when it comes to purchasing a house, we would want to get a good property at an inexpensive value and have a good home appreciation value so that we can invest in a house property with no future worries. Buying a home need a thorough look as it will most likely be a lifetime investment. We always want to get the most value of our hard-earned money. Base on the case studies, let’s say if they are not willing to considered or negotiate the price of the house that I wanted to buy, I can always walk away and find another house. Because in this situation we as the buyer wants more goods form the seller, and …show more content…
Assume that I'll end up in the middle, mid-way between the two opening negotiating positions.
The norms that I will use to utilize my initial offer are Fairness Norms, As people, we have a fundamental need for fairness in our interactions with others. This need often becomes prevalent during negotiation as we often suspect others of less that fair play.
In particular, if the relationship between the negotiating parties is important, then fairness is necessary if this is to be sustained. If the relationship is completely unimportant, then caveat emptor ('buyer beware') applies.
The real test of fairness of a negotiation is in the results that both sides get. In an unfair negotiation, one person gets everything they want and the other person gets very little. Fair results means that each person gets the important things that they need and gives up some of the less important things.
In other words, fairness is the best solution between me and the other party because we both will get exactly what we want and we both satisfied about it.
In this case I will use Reframing the original decision, namely buy vs. not buy. It is because buying a house for $329,000 that have the same price of the other 5 houses that have sold in the past year will make me think twice to buy or not because if I choose to buy the other house (A-D) I will get the better offer because it already sold the past year and I might get a