HRM595_WK7_CourseProject

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Negotiation Negotiating Dayna Kauranen Devry University HRM595 Course Project Professor Jesse Battino 11/05/2023

Negotiation Negotiations happen every single day and in several various portions of life, and oftentimes without us even realizing that we are negotiating. The majority of negotiations are viewed as either integrative or distributive. Integrative bargaining is considered as the identification of each party's attentiveness. Even though distributive bargaining is quite often viewed as the opposing of integrative bargaining, they are not mutually restrictive. Integrative bargaining partakes in a major role in distributive bargaining. I personally had little to no clue of these methods when I recently purchased a home; now that I have my home, I can reflect and pinpoint key aspects in the home-buying process of both tactics and how I utilized these methods to buy my first home in Kentucky. While most individuals are unaware of it, everybody negotiates on a day-to-day basis, such as conversing in the morning with your partner as to who is getting the children later or picking up the groceries, or choosing what to have for lunch with a coworker. Several individuals do not notice that they are negotiating since negotiating is most commonly known as something only particular individuals do for particular situations, such as purchasing a vehicle, a house, or even in a divorce settlement situation and custody battle. I think that the misconstrued is many don't pay much attention to negotiating and its skills to make oneself a better negotiator. My personal goal was to buy my first home before turning thirty for my family. Last summer, just after my twenty-ninth birthday, I called a Rocket Mortgage mortgage broker and got my first-ever home loan. There is a whole lengthy process of obtaining all your financial information, references, jobs, income, credit history, debt, etc. Then, the bank has to offer a loan at a particular rate. Then, an individual can either take and accept that offer or keep browsing for a more competitive rate, which now I wish I had compared more before negotiating and accepting the offer. Distributive bargaining negotiations are often viewed as competitive, with the outcome being a loser and a winner. Integrative negotiations are viewed as a partnership where both individuals work closely to establish a win/win. The Negotiations textbook states that there are particularly four vital steps to integrative negotiation. Those steps consist of; identifying and

Negotiation defining the issue, superficial interests and requirements, producing different solutions, and last asses and choosing alternatives. (Lewicki, Saunders, & Barry, 2015). Purchasing a house is a difficult and timely procedure. The buying of a house is one of dozens of examples in which negotiations happen in day-to-day life. Purchasing agreements are one of the few negotiations in this life when some type of negotiating is a rule instead of an anomaly. Not all individuals are effective negotiators; I know I am not, but my husband is a master negotiator and manipulator to get what he wants. A lot of knowing the process and procedures are needed in order to be an exceptional negotiator. This course provides the concepts required to provide even the not-so- adept negotiator like myself to become greater with their negotiating skills. With the information given, practicing, and withholding an unbiased mind frame, everyone can utilize the concepts given in the classroom to become much more skillful the next time a negotiation situation occurs. When it comes down to getting a loan there is not an opportunity for any form of negotiation since the terms of any loan contracted are typically considered by the lender and not by the subject itself to any negotiations. Once accepted, the house searching begins. Looking back on the whole thing, I recognized the amount of back-and-forth negotiating that happens once you have found the "house of your dreams". Start by making an offer, then creating escrow, finishing the terms, and finally, up to the closing. In this assignment, I will discuss the nature of negotiations and key elements within the negotiating process using a typically commonly understood experience, such as buying a home. At first glace, I can view the sale of a home as a problem-solving situation. In my instance, as the seller, a single mom of three, needs to sell urgently to prevent foreclosure. As well as being the buyer looking for the right price, including having all the closing costs provided by the seller and finishing with cash at hand to use on neccissary home repairs.

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Negotiation The sale and purchase of the house can be a win-win situation for the buyer and seller. The win-win scenario is also considered as integrative bargaining. An integrative form, much like distributive bargaining, consists of creating concessions to target an agreement; however, it also includes looking for mutually profitable choices and logical switch-offs. It is also known as an expanded-pie approach since negotiators look for better options than the prior ones that require soley their own requirements. Integrative techniques consist of a persistent comprehension of the problem; open sharing of data, as well as the shared research of solutions that benefit both sides. In integrative bargaining, both parties typically coordinate to achieve complete total benefits of the final agreements. Integrative negotiators typically strive to obtain one of two goals or both: one to establish as much value as probable for both parties and two to claim as much value as probable for their own sake. The integrative technique doesn’t need negotiating to provide demands created by the other individuals or sacrifice any of their wants. The parties need to view options and not focus on trading concessions. Integrative bargaining typically needs the presence of several problems to be negotiated, which entitles the negotiator to discover common ground on some issues, trade- offs positioning on some problems, and distributive bargaining on problems as well. Establishing values and finding mutually agreed upon benefits on some problems needs parties to share data and present more choices than the typical distributive bargaining, in which parties rarely share their real wants and seldomly look for new options, nevertheless focusing on concessions and an agreement. Our recent lectures taught us that the beginning point of successful negotiations involves planning and preparation. The procedure of purchasing a house needs a large amount of preparing. There are vital planning duties that allow individuals to negotiate the purchasing of a new home. The most important thing is picking a

Negotiation negotiating tactic that would benefit and achieve one's desired results. Integrative negotiation would be the best to utilize whenever appropriate. Negotiating is a procedure by which two or more individuals try to fix their opposing desires. Negotiating is a way of settling or correcting the individuals' requirements. Always remember that the desires of one individual, in most situations, aren’t necessarily the same desires of the other(s). When desires are different, we could consider this as distributive bargaining. There would inevitably be a win-lose outcome. With a house-purchasing experience, I intended to purchase a house with all the appliances I had defined as being essential as long as the house was within my pricing point. The pricing range had been established, as I had no desire to go over this price range even though the mortgage company had approved a higher loan. I knew it was in my best interest to buy a house with a conservative amount to ensure there was no default probability. In order to finalize the terms and conditions of the sale, each person has to partake in a mutually agreed upon adjustment. Partaking in a mutual adjustment includes a back-and-forth that is typical in any negotiation. As the potential purchaser, I show my offer, knowing that the initial offering might not be accepted immediately. As we go back and forth negotiating, giving as well as taking, our objective is to create value for the other party. You want the other person to think that we are willing to give up something of value so that they do not think they are getting less. Creating value in a negotiation is vital; you must understand what the other person might think is valuable. Such as, I understood from the seller’s realitor that the seller wanted to sell the home to prevent foreclosure. The homeowner was in the process of a divorce and did not want to keep the house. To me, the homeowner's freedom from the bank was more than likely what he valued. When negotiating, I kept emphasizing that the seller only had to

Negotiation agree to the terms that I was providing and that the seller would be debt-free. I reviewed the amount of time the home had been on the market. My strategy was to make the seller believe that I was giving him a deal that would provide the seller with the mortgage, a deal that might not be available again since I was the only one interested in purchasing the house based on how long the house had been on the market without any takers. I believe that I had established an intangible value that took part on the seller’s emotions. The fourth key factor of negotiating is managing conflicts and disagreements. Earlier, I stated that individuals negotiate to squash conflicts. For me, the conflict resulted from meeting two key needs. My requirement came from the want and need for owning a home, as well as the seller’s requirment was justified by his removal of his homeownership. The process of planning and preparing is crucial to any winning negotiation. If one is not prepared, one might not be well prepared to establish or accept offers. Before creating my first purchase offer, the research I did showed the typical sale prices of the homes in the area where I would like my new home to be. As well as reviewing how long the homes have been on the market and if any offers have been made. Some of the data wasn’t available, and took some time to gather and ask questions. Since the home I wanted had been up for sale for many months, it gave me a boost since I knew that the seller was determined to sell his house. Additionally, I reviewed the foreclosure process and learned from the seller’s realtor that the homeowner's mortgage was about to be in foreclosure. Before making an offer, I reviewed the banking systems process to make sure that there were no liens on the house and/or any more factors that could be added later on in the negotiation. I knew that timing was vital since the home was about to be foreclosed on. The seller needed to sell from the mortgage company prior to the deadline, I had to move fast since

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Negotiation the bank was about to foreclose on the home loan, and then I would have to handle all deals with the bank instead of the homeowner. Finally as I looked over the house, I noticed many repairs that required to be handled. I ended up having two different contractors take a look at the house and give estimates on the repairs. I had asked the seller to make the needed repairs before the closing or to pay me for the repairs as close to or equal to costs so I could have them finished prior to me moving in. The repairs were not big in terms of a deal breaker when purchasing the home. The repairs consisted of some painting, removal of termites outside, replacing some windows, adding some railing to the basement steps and fixing a broken pipe. By looking at the formal estimates, I was capable of presenting what I wanted to the homeowner, thus, the seller agreed to pay me at the final closing a total of $10,000 to cover any and all needed repairs. This negotiation is a great example of a win-win situation. At closing the seller and myself both got what we required at terms that we had agreed upon. I had utilized the integrative negotiation form in my attempt to purchase my very first house. I worried about establishing value and reviewing the transactions as a benefit to both individuals. My objectives did not negatively hurt the seller’s wants. We stayed focused on mutual ground instead of differences. We reviewed our common interests and addressed them head-on. We were upfront about meeting everyone's requirements by exchanging ideas and coming to an understanding that benefits everyone involved. Deciding upon the right strategy is critical to any successful negotiation situation. Purchasing a house is a difficult process; the purchasing of a house is one of several examples of negotiations that happen daily. Negotiating takes careful consideration, preparing, learning, researching, and establishing plans. In regards to negotiating, individuals ought to be capable of anticipating the other persons' counteroffers and requirements to one's conditions. Not

Negotiation everyone is proficient in negotiating; however, preparing for a negotiation helps. Others might feel as if they are great negotiators; however, bargaining is a skill. It takes a great knowledge of the process and procedures in order to excel at it. This course has taught me the key concepts and methods to provide even the not so advanced negotiators to become more significant at negotiations. By researching, preparing, and obtaining a set mindset, individuals can utilize the tools provided in this course to become better at negotiating the next time a situation occurs

Negotiation Reference Lewicki, Robert, Saunders, Darious, & Barry, Bridgett May 15th, 2015. Negotiations. McGraw- Hill Education.

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