Bargaining Skills - Buying a House - Research Paper Example

Bargaining Skills al Affiliation) Introduction Bargaining is finding the middle ground between a buyer and a sellerover commodities or a service. The bargain is always over the prices of the products and services. Most companies value individuals who have negotiation skills because they are a valuable asset. Job descriptions of sales and marketing positions list negotiation skills as one of the skills required for the job (Carrell & Heavrin, 2008). Incorporation of communication skills and interpersonal skills among individuals leads to sales and marketing individuals with negotiation skills. Negotiation skills occur when people or parties disagree on the solution to a problem. A triumphant negotiation requires two opposing parties to come together. The meeting between the two sides is for carrying out a consultation. There are various bargaining tips from that most successful individuals use in the negotiation meeting. First, understanding the importance of the negotiation is essential to the bargain. The importance of the consultation gives the negotiators the motivation to carry out the meetings. Secondly, the mediator should show that he understands the context of the bargain. Indicating knowledge of the negotiation gives the other party confidence and belief. Thirdly, showing various values to the other party gives him or her chance to think about the offers the negotiator is presenting. Fourthly, the negotiator should lay out the reality to the other individuals. Truth is important because it builds trusts between the mediator and the other individuals in the deal. Lastly, the use of emotions in carrying out the negotiation is essential to the authenticity of the deal. Most individuals make decisions based on emotions and use of emotions will lead to a successful negotiation (Downs, 2008). Distributive bargaining is a negotiation in which the involved individuals try to divide or distribute something. Distributive bargaining is competitive, and it means that there are parties in the deal that will gain more. Distributive bargaining happens in a situation where both sides in the negotiation want a win-win result (Hone Your Negotiation Skills, 2014). The people in the deal or negotiation always want to keep up a good working association. The type of talk happens when there are problems with the resources in the deal. This leads to a scenario where of the individuals in the party stands to lose something in the deal. Most deals have the potential to become a distributive bargaining negotiation. In a hypothetical situation, that I receive a promotion and must relocate to a different city to buy a home requires bargaining skills. Purchase of a home is important to both parties in the deal. The buyer wants the best available house, and the seller want to get the best deal. It means that the purchase of a home is a distributive bargaining situation. In the case of buying, one of the parties stands to lose something. The seller holds losing on profit maximization, and the buyer may pay more for the home. The nature of the distributive bargain is for both parties to maximize their share of the limiting resource in the agreement (Hooge, 2011). In the end, both sides in the accord may use various tactics to have the deal in their favor. The five distributive bargaining skills are necessary for dealing with transactions of these kinds. The five distributing skills of a negotiation are vital in the purchase of a house. The first skill involves the recognition of a distributive bargaining situation. Recognition of a distributive bargain situation is by use of three key components. Use of appropriate strategies helps individuals reach a preferred settlement. The second skill is to determine the reservation price in the deal to prevent future disagreements. The reservation price is the price in which the seller is not willing to take anything lower than the offered price. In addition to, it is the price where the buyer is not prepared to pay more than the stated price. Most people refer reservation price as the walk away point of the negotiation. In this case, the reservation price is set the same as the target rate of 310000. The third skill is learning how bracketing technique works to get the needed outcome. Bracketing is creating a zone of possible agreement in a negotiation (Hooge, 2011). The area is the establishment of the upper and lower limits in which the deal is to operate. Bracketing technique moves the negotiators close to the actual gap. The secret to bracketing is making the other party make their offer first. Stating the offer first makes the other to bracket. It involves moving towards the middle after making the initial offers. I would an initial offer of 250000, and the offer of the seller makes an initial offer at 370000. Application of bracketing technique results in a target price of 310000 as the price of the house. The fourth skill involves recognition and the use of social norms to evaluate the available offers. Social norms guide the negotiation process of a deal. There are four primary relationship rules in the negotiation process. They include relational norms, fairness norms, reciprocity norms, and good faith bargaining norms. In the deal, I would use the good faith bargaining norm. In a negotiation, individuals expect the negotiators to behave in a particular manner. In the good faith, negotiation norm there is an expectation that the parties will act in good faith. In the process, there will be honest submission of information. Reciprocity norm is the tendency of individuals to act in the same amount of the actions of others negotiators (Downs, 2008). I would use the fairness standard because the need to be fair is vital to deal. The need to become reasonable and equitable makes individuals certain of the negotiations. The use of fairness norm provides consistency for a bargain or a negotiation. It is the most used norm in most negotiations and negotiators correctly anticipate the other partys norm. I would identify the major issues discussed in the deal. The next process is to frame the issues to decide how to convince other individuals using it. Framing is an important process because framing a negotiation shows how the other parties view it (Carrell & Heavrin, 2008). It refers to giving wording and context to the offer of the house. References Carrell, M., & Heavrin, C. (2008). Negotiating essentials. Upper Saddle River, NJ: Pearson/Prentice Hall. Downs, L. (2008). Negotiation skills training. Alexandria, Va.: ASTD Press. Hone Your Negotiation Skills. (2014). Special Events Galore, 15(1), 4-4. doi:10.1002/speg.30008 Hooge, I. (2011). Decision making and negotiations. Harlow: Pearson Custom Publishing. Read More