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Buying a house


In distributable bargaining, both parties compete over who will get the most of a limited resource. The goal of one party is often in fundamental and direct conflict with the objectives of the other party. Resources are limited and fixed; however, both parties desire to maximize their share. In distributive bargaining, the most important strategy for both parties is to carefully guard information. The information is only disclosed only when it provides a strategic advantage to the party. Also, it is advantageous to get information from the other party in order to improve the negotiation power. The achievement of the desired goals depends on the employment of strategies and tactics by both parties.

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When using distributable bargaining, I will aim at getting the best bargain price, from the seller. I will use various bargaining strategies and tactics to achieve the goal.

Distributive situations

I wish to pay $310,000 for the house. It is obvious that the buyer will require a larger sum of money to sell the house. I will meet the seller the next day at his office site to take a tour and begin talking numbers. As we walk around I will casually make the first offer, suggesting that the buying price to be $ 280, 000. This will be $30,000 less than I hope to pay. The seller will then make his offer with the amount that he considers maximum selling price. These numbers will help me in analyzing the distributive bargaining situation. Alex’s preferred price is the target point, the point at which a negotiator. With the information on the target point and resistance point, I will be able to formulate my bargaining strategy. My price will be the reservation point or the first number that I will quote to the seller.

A distributive situation presents itself in three dimensions. The first step will be to recognize the distributive bargaining situation. Bargaining situations call for various strategies. When faced with an independent situation that requires bargaining strategies and tactics exclusively, it is important to understand how to counter their effects. In a distributive situation, there is space for negotiation between the buyer and the seller. The object of purchase must not be stated in fixed terms.

Secondly, I will begin by determining a reservation price to prevent prompt decisions that may influence me to agree with the unacceptable offer of the seller. To determine the reservation price, I will research for the average market price of the house. That way, I will be able to state a figure that will be close to the actual figure. In addition, I will avoid undervaluation or overvaluation that might end the negotiation indefinitely. I will search for relational information regarding the seller. Information regarding facts, feelings, and beliefs of the seller is important when building a relationship when making the purchase. Substantive information containing facts and pertinent data concerning the other party will offer me a position to utilize logic and caring. This information will be relevant in assessing the other party’s target cost of terminating and negotiations resistance point. I will also manage the other parties impression of the buyers target, the resistance point, and cost of terminating negotiation. Modifying the other party’s perception is also important. It is also essential to manipulate the actual costs of delaying or terminating negotiations

Thirdly, I will use bracketing of the other party’s offer to achieve my desired outcome in the distributive negotiation. After the initial offer, I will apply bracketing as the logical bargaining process of moving to settle at a consensus or middle point. By bracketing, I will be able to assess the seller’s maximum selling price. This way I will be able to strategize and use skills to achieve my targeted price.

I will then use accepted practices and common social norms to evaluate the offer, make a counter offer and reach a settlement point. There are several norms that are required in negotiations. They include relational, reciprocity and good faith. In a negotiation situation both parties are involved in a strictly win-lose relationship. Norms are important in maximizing negotiation outcomes. Norms build relationship with the seller. The development of the positive relationship maximizes the outcome during negotiations. Researchers recognize that norms can lead to the seller overlooking maximum outcomes in favor of less efficient trades or suboptimal that provides a more satisfying relationship Fairness norm is also important in negotiating the price. Quoting a fair price gives either sides gain or the amount that are almost equal.

Lastly, I will learn the important role of framing offers to effectively influence how the seller will perceive my offer. It is of benefit to move away from the target point in order to effectively make a concession. To achieve the target price, one has to state a lower price that is close to the resistance point. At the same time, the starting is not supposed to be too far from the target point. This is because if the first offer is too low, for example$ 200000, the seller might break off the negotiations or may see me to be quite unreasonable.


In distributive bargaining, it is also important to change the context of the buyer from the purchase decision to an investment decision. Through focusing on framing, I is possible to get a better offer from the seller. In addition, I can use contrast framing by shifting from a single price to a much smaller price in terms of monthly payments. Negative framing is also effective given the fact that humans are loss averse. For example, I can change the seller’s decision in terms of avoiding a loss.


Levy, D., Murphy, L., & Lee, C. C. (2008). Influences and Emotions: Exploring Family Decision-making Processes when Buying a House. Housing Studies, 23(2), 271-289.

Lin, Y., Chang, C., & Chen, C. (2014). Why homebuyers have a high housing affordability problem: Quantile regression analysis. Habitat International, 4341-47

Koklič M, Vida I. A Strategic Household Purchase: Consumer House Buying Behavior. Managing Global Transitions: International Research Journal [serial online]. March 2009;7(1):75-96

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in urgent custom research papers. If you need a similar paper you can place your order from nursing school papers services.

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