Getting to Yes

How do you go about discussing objective material with the other side?

1. Frame each issue as a joint search for objective criteria. 2. Reason and be open to reason as to which standards are most appropriate and how they should be applied. 3. Never yield to pressure, only to principle. In short, focus on objective criteria firmly but flexibly. Frame each issue as a joint search for objective criteria.

seven steps in the international communication process

1. Information source 2. Encoding 3. Message Channel 4. Decoding 5. Receiver 6. Feedback 7. Noise

What are the three steps of developing your BATNA?

1. Inventing 2. Improve the best ideas 3. Select from the best ideas

four kinds of problems in international business negotiations

1. Language 2. Nonverbal Behaviors 3. Values 4. Thinking and decision making processes

What are two of the three principals of speech that will assist in negotiation? ( Speak -----).

1. Listen actively 2. Speak to be understood

Please list three to six principles of Talking about Interests.

1. Make your interests come alive 2. Put the problem before your answer 3. Look forward, not back

Name 4 of the 8 inductive approaches to conflict assessment.

1. Making observations 2. Conducting interviews 3. Identifying system rules 4. Listing microevents

Chapter five discusses fair standards and fair procedures. Please list five (pre-existing) types of fair standards.

1. Market value 2. Professional standards 3. Costs 4. Efficiency 5. Tradition

What are 4 of the 8 steps or elements in Wilomot and Hocker conflict assessment guide.

1. Nature of the conflict 2. Interests and goals 3. Power 4. Styles

What are the three big problems in communication?

1. Negotiators are not talking to be understood 2. The other side is not hearing you 3. Misunderstanding

Four stages of business negotiations

1. Nontask sounding 2. Task-related exchange of info 3. Persuasion 4. Concessions and agreement

What are the four principles of "principled negotiation"?

1. Separate the people from the problem 2. Focus on interests 3. Generate a variety of possibilities before deciding what to do 4. Insist that the result be based on some objective standard

what are the 5 negotiation tactics discussed in this article?

1. surprise 2. info sharing 3. closing techniques 4. realistic commitments 5. decision making and stakeholders

Name 3 of the 6 "Practical" principles of systems theory (Papp, Silverstein and Carter, 1973)

1. Cooperation is necessary among system members to keep conflict going 2. Triangles tend to form in systems 3. The conflict serves the system in some way

What are the four principles of principled negotiation?

1. People 2. Interests 3. Options 4. Criteria

A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?

Friday, midnight. Because agreement was reached and SIGNED documents were provided on TUESDAY, Friday midnight ends the THREE-business-day period

Four largest EU countries

Germany France UK Italy

Waiting time

Getting stuck in positions: • increases the time and costs of reaching agreement •Increases the risk that no agreement will be reached at all." (Getting to Yes pg. 6)

Jake Warrant rents his above-garage studio apartment to a college student on a month-to-month basis. When Jake decides to terminate the rental agreement and convert the apartment into a private studio for his artwork, how much notice is he required to give his tenant?

30 days

Dimensions underlying the classification (figure 9.1) 4) Manifest

4) Conflict is enacted through communication. Interaction might involved cycles of escalation and de-escalation as various strategies are used

On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan?

42 Months. Eight percent of $6,071 is $486 per year or $40.50 per month. $1,700 divided by $40.50 means the borrower held the loan for forty-two months.

Dimensions underlying the classification (figure 9.1) 5) Conflict Aftermath

5) Conflict episode has both short-term and long-term effects on the individuals, their relationship, and the organization

A house sold for $42,000. The buyer mad a 20% down payment. Monthly interest on the loan was $252. What was the interest rate on the loan?

9% With a 20% down payment of $8,400, the buyer had a mortgage of $33,600. Since interest is expressed in annual terms, multiply the monthly payment of $252 times twelve. That yields an annual interest cost of $3,024, divided by the principal balance of $33,600, yields an annual rate of 9%.

If advertised alone, which would be in violation of Truth in Lending?

A) "FHA financing available" B) "assumable loan" C) "No down payment required" (Correct) D) "easy financing terms"

Which type of loan will result in the largest reduction of the principal balance most quickly?

A) 10% over 30 years B) 11% over 20 years C) 13% over 15 years (Correct) D)14% over 20 years

Recent changes to law require the Texas Real Estate Commission to provide an online system for license application and renewals. Which of the following is NOT required for an electronically submitted license application?

A) A fee for evaluation of educational records B) A complete application form, filled out on the web site C) A signature submitted to the commission before the license can be issued D) A state-authorized photo for purposes of definitive identification (Correct)

Which of the following is true of a second mortgage?

A) It has priority over a first mortgage B) It cannot be used as a security instrument C) It is not negotiable D) It is usually issued at a higher rate of interest (Correct)

In which of the following situations can licensee Craig Lovelace legally and ethically accept a net listing?

A) Only when the principal understands current market values and requires a net listing (Correct) B) Anytime the seller agrees, as long as Craig earns no more than ten percent of the sale proceeds C) Whenever the sale price exceeds the owner's asking price by at least twenty-five percent D) Only when he is representing both parties of a transaction

All of the following scenarios involve illegal activity EXCEPT which one?

A) P.J. Hamilton, a busy physician who enjoys rehabbing and reselling homes, asks her sister Rae, an elementary teacher with the summer off, to locate vacant houses that have been on the market for at least 3 months and need some renovations. In return for her sister's help, P.J. promises to pay Rae 5% of the purchase price of each suitable house. Rae considers this an excellent summer job! B) Chris Baker, a New Mexico resident and entrepreneur, maintains an Internet business which assists New Mexico buyers in acquiring Texas property, primarily for investment purposes. Although Chris and all of his employees are licensed realtors in the state of New Mexico, none of them holds Texas licensure. All preliminary business is conducted electronically, either via email or conference call, but Chris or one of his designees always meets clients in person at the property before closing to ensure that final details are handled appropriately. C) Kelsey Benn, an elderly widow, approaches Martin Whaler, a young attorney who is a member of her church, and asks for his assistance in finding a small home of her own. She's been living with her daughter since moving to the area a year ago. She knows she can trust Martin and hopes his legal expertise will prevent anyone from taking advantage of her. He agrees to help and tells her she does not need to engage a real estate salesperson; in return, she agrees to pay Martin a commission. (Correct) D) Kurt and Jeanne Blain decide to put their small bungalow on the market as "For Sale By Owner." They need a larger house now that they have a second child on the way. Jeanne's sister, Angela, is the Office Manager of a large real estate agency in Waco. Although Angela does not yet have her real estate license, she feels confident that her 6 months of work experience will enable her to help her sister and brother-in-law find a bigger house and negotiate all the hurdles of the process. The Blains will pay Angela $1,000 for assisting them with both the process of selling their home and finding a new one.

Which of the following belongings is an example of a fixture?

A) Portable dishwasher unit B) Space saver, stackable clothes washer and dryer set C) Window air-conditioner bolted to a window frame (Correct) D) Oriental floor rug that covers the entire floor surface of a room

Which of the following actions would be mandated by RESPA?

A) Provision of a good faith estimate (Correct) B) Protection of the ownership rights to minerals contained in a particular parcel of land C) Full disclosure of hidden material/structural defects D) Full disclosure of the terms of a loan

Which of the following is NOT true of an easement along the Gulf Intracoastal Waterway?

A) Real estate agents should advise buyers that the public has obtained an easement to the public beach areas. B) If no clearly marked natural vegetation line exists, there is no easement. (Correct) C) It is illegal to interfere with the public easement to the public beach areas. D) The state of Texas retains the right to tear down any structures built seaward of the easement line.

Regional Cooperation Groups

Govts agree to participate jointly to develop basic industries beneficial to each economy Each helps in financing and has a share of output

What kind of the industry is conflict?

Growth

Harvey Lipman, a masonry subcontractor, is owed $5,000 for work on a custom-built home in Sulphur Springs. How can he give constructive notice when his invoices to the customer continue to go unpaid?

He can obtain a mechanic's lien against the property

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?

He must exercise his option under the terms of the option contract

Signals of progress in Japanese negotiation

Higher-level foreigners included in discussions Questions beginning to focus on specifics Softening of attitudes and positions Increased talk among themselves in own language Increased bargaining and use of informal communication

A real estate agent should tell the buyer, his customer, which of the following?

A) how long a property has been on the market B) the seller's motivation for marketing his property C) a pending or recent zoning change (Correct) D) the seller is getting a divorce

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?

A) interest rate B) monthly payments (Correct) C) finance charge D) annual rate

Which transaction requires a securities license?

A) leasing a commercial building B) selling a commercial warehouse C) selling shares in Fannie Mae (Correct) D) arranging a sale-leaseback on a commercial property

The finance charges recorded on the Truth in Lending statements would include all of the following EXCEPT:

A) loan fees charged by the lender B) insurance premiums for mortgage insurance payment C) discount points and service fees D) recording fees and title insurance premiums (Correct)

Usury MOST nearly means:

A) making loans without the benefit of co-signors B) lending money at fluctuating interest rates C) being capable of multiple usage D) illegal interest (Correct)

In which of the following markets may a lender sell a loan that a mortgage banker has previously originated?

A) primary market B) secondary market (Correct) C) mortgage market D) consumer market

Which is the best example of functional obsolescence?

A) residential home built next to a factory B) peeling paint C) steep, narrow stairway in a 1 and 3/4 story home (Correct) D) residential home with central air conditioning

Who is NOT an originator of primary loans?

A) savings and loans B) credit unions C) commercial banks D) FHA (Correct)

RESPA would prohibit which of the following acts?

A) steering B) paying of kickbacks (Correct) C) blockbusting D) redlining

A listing agent must disclose which of the following facts to a prospective buyer?

A) values and features of area comparables B) the lock-in rate C) covenants, conditions, and restrictions (Correct) D) existence of an open listing

A.C.E

Acknowledge what has been said: -you appear to be very upset -it seems like you feel very strongly about this. ask Clarifying questions: -am I hearing you say that...? -why specifically are you upset? Explore options for moving forward from the situation or disagreement: -what needs to happen at this point? -if this were to happen again in the future, what would we do differently?

Free Trade Area

Agreement bw two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partners while individuals maintain tariff schedules for externals

What happens if the other side becomes familiar with the contents of the book Getting to Yes?

All the better

Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liqiudation of debt by periodic installment until the debt is satisfied?

Amortized Loan

Putting workers out of jobs

How the expansion of the EU worries existing members when it comes to cheap labor

Strategic implications for marketing

As a country develops, incomes change, population concentrations shift, expectations for a better life grow, new infrastructures evolve, social capita investments are made, market behavior changes, and eventually a group of consumers with common tastes and needs arise

Examples of LDCs

Asia and Latin America

Technique for identifying interests

Ask "Why?", Ask "Why not?" Think about their choice. Realize that each side has multiple interests, The most powerful interests are basic human needs. In searching for the basic interests behind a declared position, look particularly for those bedrock concerns which motivate all people, Make a list

checklist to ensure proper preparation for international negotiations

Assessment of the situation and the people facts to confirm during negotiation agenda best alternative to negotiated agreement (BATNA) concession strategies team assignments

Examples of MDCs

Canada, Englad, France, Germany, Japan, US

Without __________________ there is no negotiation.

Communication

What is the opposite view of the Collaborative Approach, and what is the focus of this approach? What is an alternate name for this approach?

Competitive approach or Distributive approach

The lender is not insured or guaranteed against a loss, by reason of the borrower's default in repayment, under which type of loan?

Conventional

Countries in DR-CAFTA

Costa Rica, El Salvador, DR, Guatemala, Honduras, Nicaragua, and the US

TOOL #1 Cultivate an Abundance Mentality

Cultivating Abundance Suppose two heirs have been left equal shares of an estate that contains exactly one object: a very valuable painting. What options are available to them? (HINT: I can list at least eight...) Eight Solutions: Source: Young, H. P. (1995) "Dividing the Indivisible", The American Behavioral Scientist, 38: 904-920. •Physical division - cut the painting in two •Lottery - use chance to determine who gets •Rotation - hang painting in heirs' homes for alternating years. •Common ownership - hang painting in a common hallway in heirs' home, office, etc. •Subtraction - Destroy it or donate it to a museum. •Sale - Sell the painting and divide the money or exchange it for two other paintings •Compensation - One heir pays the other for exclusive possession of the painting. •Unbundle entitlements - One heir gets exclusive enjoyment of the painting, after which the painting goes to a museum who pays the second heir now for the right to acquire it later. Developing an Abundance Mentality: Check Your Thinking Watch Out For These Mental Traps 1."Fixed Pie Perception" - negotiators enter negotiations expecting the other party's interests to be completely opposed to their own. (The good news is that more balanced expectations also led to better outcomes.) Developing an Abundance Mentality: Check Your Thinking Watch Out For These Mental Traps 2. "Abundance Denial" - a phenomenon where millions of women and men construct elaborate mental rationales for considering themselves materially deprived, and in doing so only succeed in causing their life experience to be unhappy. 3. "Collapse Anxiety" - a widespread feeling that the prosperity of the United States and the European Union cannot really be enjoyed because the Western lifestyle may crash owing to economic breakdown, environmental damage, resource exhaustion, terrorism, population growth, or some other imposed calamity.

Examples of LLDCs

Central Africa and parts of Asia

When asked about being a hard or soft negotiator the authors suggest neither, rather we should do what?

Change the game, principle negotiation

Rex Kinsella has received two offers on his ranch and acreage. The sprawling Sheffield estate, replete with large Spanish colonial manor house, horse barn, several smaller outbuildings, and several acres of cleared land is a steal at only $216,500. The first offer, from Clara Walters, a young woman who wants to start a horse riding academy, is for $211,900 cash. The competing offer from the Millhouses, a middle-aged couple who need plenty of room for their grandchildrens' visits, offers $215,000 with 10% down and a request that Rex pay 2 points on their mortgage loan. Which offer would be most lucrative for Rex?

Clara Walters' offer because she is paying cash and not asking for Rex to pay any points

What is the most basic task 'in this chapter' is to structure what? What are two destructive ways to achieve this task?

Establish an even playing field Dominance and manipulation

Common Market

Everything from customs union plus removes all restrictions on free flow of capital and labor among member nations

Describe the 2 of the following Collaborative Communication patterns:

Expanding the pie- Expanding the resources Nonspecific compensation- One of the parties is paid off Log rolling- Shuffle the issues until the top priority issues comes to the top Bridging- Inventing new options to help other sides needs

Describe the difference between system rules and Micro events

Micro events are repetitive communication patterns that carry information about the underlying conflict structure. System rules Underlying communication structure of the interaction

Political Union

Most fully integrated multinational cooperation complete political and economic integration, either voluntary or enforced

Effects of aspirations

Myth: know your walk away number and focus on it Science: your aspiration is FAR MORE IMPORTANT in value claiming Higher aspiration= larger slice of the pie

Looking at shopping centers in the appraisal process, the social fiber of the community and distances from schools is called:

Neighborhood Analysis

No matter how many people...involved in a negotiation...decisions....typically made-

No matter how many people are involved in a negotiation, important decisions are typically made when no more than two people are in the room.

Grant Parks, a general contractor, and his partner Sam Davis, a licensed broker, decide to buy a rundown apartment building in downtown Houston for which Sam is the listing agent. The property has been on the market for over nine months and has not attracted any offers. Grant and Sam plan to rehab the building and seek a change in zoning to make it more marketable. Can Grant buy the property from the seller without disclosing his partnership with Sam?

No, Sam should inform the seller of his partnership with Grant

In doing a market analysis, an appraiser found a recently sold property where the owners had just gone through a divorce. The property had been listed for $60,000 for 3 months but was purchased for $40,000 by one of the spouses. Should the appraiser use this as a comparable?

No--because of the divorce it was not an "at arms' length" transaction.

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be a violation of the Truth in Lending Act?

No. Owners are not covered by Reg. Z.

Advocate for your interests but be flexible

One of Three Possible Outcomes: •Discover compatible interests. •Discover differing, but complementary (tradable) interests. •A clear mismatch.

Infrastructure

Social overhead capital, those capital goods that serve the activities of many industries

One dilemma that people face is that they see negotiation as either ______________________ or ___________________.

Soft or Hard

Mercosur

Southern Cone Free Trade Area Common market that would eventually allow for free movement of goods, capital, labor, services, among member countries under a uniform external tariff with no central institution

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called?

Statutory Right of Redemption

Fear based noise •Stress over changes in tradition •Stress over acceptance •The Victim Syndrome •Blame

Stress Over Changes in Tradition •When a party is worried about changes in established procedures, modes of thinking and/or acting, or basically, anything that threatens to disturb their comfort zone Stress over acceptance •When a party is concerned he will not be accepted by 1) a group of fellows outside of the negotiation if he is able to communicate with the other party, 2) by the other party if the party's position is honestly expressed. The victim syndrome ●When the party is absorbed in self-pity. ●Or when he/she feels persecuted because he/she believes that being called to a meeting he/she has done something wrong.

Their interests

To maximize the pie You must first determine the other side's interests.

"Never yield _______ _______________________, only ________ ______________________."

To pressure, to principle

What is the purpose of Regulation Z?

To provide full disclosure of loan terms

What do we call triangles that form in relationships that lead to destructive behavior? Draw a triangle with conflicting dyads, alliances, and isolates

Toxic triangles.

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it?

The trustee

A VA loan may be granted for the purchase of a one-family to four-family property if:

The veteran agrees to live there

Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker?

There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.

What is the legal biew of dower and curtesy in Texas?

They are not recognized

Which is true about restrictive covenants?

They are placed by private parties in a deed.

Why would a mortgagee (beneficiary) have an appraisal on the property?

To assure the property value is suffcient to cover the loan.

Why is the RESPA closing statement allowed to be examined on or before closing?

To check for mathematical errors

The first step in an appraisal is:

To define the problem.

How does one determine the gross rent multiplier?

Property value divided by the monthly rent.

TOOL #2 Provide Information and Ask Diagnostic Questions

Provide information and ask diagnostic questions "A good negotiator will have thought in advance about information she does not want to disclose, and will have decided how to deal with requests for that information. It is the unprepared negotiator who often discloses inadvertently or lies because, on the spot, he can think of no other way to avoid disclosing sensitive information." - Bruce Patton, co-author of Getting to Yes Provide Information and Ask Diagnostic Questions •Share information about your interests and concerns. •Ask about their interests and concerns •Key Question: Where are our shared concerns? *See deal relationship cycle in notes*

What is a trip wire?

Provides a margin in reserve

Suggestions to help you understand the other side's thinking (perceptions):

Put yourself in their shoes, Discuss each other's perceptions, Look for opportunities to act inconsistently with their perceptions, Perhaps the best way to change their perceptions is to send them a message different from what they expect, Give them a stake in the outcome by making sure they participate in the process. & Face-saving: Make your proposals consistent with their values.

What was the lesson of the ship wreck to sailors?

Rather than fighting over what is left from the shipwreck, work together and help each other.

five sorts of multinational cooperation

Regional Cooperation Groups Free Trade Area Customs Union Common Market Political Union

How to generate more options:

To generate more options don't look for the one best answer and designate brainstorming times. the circle chart, look through the eyes of different experts, invest agreements of different strengths, and change the scope of proposed agreements

An appraiser is usually paid:

a fee based on the amount of time and effort.

Two brothers, Mike and Austin Dunn, want to buy a townhouse together in Texarkana. Both men are recent college grads with professional-level jobs. Their lender has suggested a mortgage that offers lower monthly payments in the beginning that gradually increase at predetermined times over the life of the loan. Given that they expect their incomes to increase annually, they feel this type of loan might be a good choice because they'll be able to afford a larger townhouse. What type of loan does this describe?

a graduated payment mortgage

Patty rents a storefront in downtown Arlington for her day spa, Boundless Beauty. She pays $1,500 a month in rent, plus a portion of the landlord's taxes, maintenance, and insurance (which fluctuate). What type of lease does Patty have?

a triple net lease

Economic obsolescence in a property is generally:

a type of depreciation that is incurable.

what approach do principles of effective negotiation take?

integrative approach

In an installment land contract, what type of title did the seller retain?

legal

The most productive response to an emotional outburst

listen quietly without responding to their attacks and occasionally encourage them to get it all out Releasing emotions can prove risky if it leads to an emotional reaction. If not controlled, it can result in a violent quarrel. One unusual and effective technique to contain the impact of emotions was used in the 1950s by the Human Relations Committee, a labor-management group set up in the steel industry to handle emerging conflicts before they became serious problems. The members of the committee adopted the rule that only one person could get angry at a time. This made it legitimate for others not to respond stormily to an angry outburst. It also made letting off emotional steam easier by making an outburst itself more legitimate: "That's OK. It's his turn." The rule has the further advantage of helping people control their emotions. Breaking the rule implies that you have lost self-control, so you lose some face.

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the:

loan amount

The seller and the buyer agreed to a purchase price of $103,500 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $39,440. with an interest rate of 10%.The monthly payment was $440 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank?

loan balance $39,440; interest due $164.33 Although many types of loans can become more complex in their calculations of remaining principal and interest at a particular point in time, in this case the interest portion of the payment is calculated simply by multiplying $39,440 by 10% and dividing by twelve. That results in monthly interest of $328.66, with half that amount, or $164.33 added to the principal payment at closing.

seven aspects of negotiation setting that should be manipulated

location physical arrangement number of parties number of participants audiences communication channels time limits

A recorded subdivision plat is used in the:

lot and block system

Three criteria by which negotiation should be fairly judged:

o It should produce a wise agreement if agreement is possible. o It should be efficient. o It should improve or at least not damage the relationship between the parties.

Negotiation jutitsu-

o Not reacting to any attacks o Do not push back o Sidestep their attack and deflect it against the problem. focuses on what they may do...counter their basic moves of positional bargaining by directing their attention to merits. refusing to react

sales promotions

marketing activities that stimulate consumer purchases and improve retailer or middleman effectiveness and cooperation

reasons why international communication may fail

media inadequacy cultural interpretations marketer did not correctly assess the needs and wants or thinking process of the target market

Developing messages

most daunting task in international advertising

Brazil negotiation styles

most likely to touch others while negotiating

NICs

newly industrialized countries, rapid industrialization of targeted industries and have per capita income that exceeds other developing countries, have moved away from restrictive trade, attract trade and foreign direct investment

For the past 30 years, the Ls have operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Ls' grocery store is located. The store is now an example of a/an:

nonconforming use.

Standard technique of good listening

pay close attention to what is said, to ask the other party to spell out carefully and clearly exactly what they mean, and to request that ideas be repeated if there is any ambiguity or uncertainty. Make it your task while listening not to phrase a response, but to understand them as they see themselves. Take in their perceptions, their needs, and their constraints.

primary way economic unions enlarge market opportunities

preferential tariff treatment for members common tariff barriers against outsiders

The primary survey line running north and south in the rectangular survey system is the:

principal meridian

When developing objective criteria you might consider:

procedural solutions, look at other basic means of settling differences (taking turns, drawing lots, letting someone decide)

Three steps in negotiating the rules

recognize the tactic, raise the issue explicitly, and question the tactic's legitimacy and desirability — negotiate over it.

When an appraiser correlates the three approaches into a final estimate, he:

reconciles the differences according to the type of property being appraised and the quantity and quality of data available.

A feature found in a comparable property that is not present in the subject property will result in a:

reduction adjustment to the comparable's selling price.

The Adams family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered the monetary value of the home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of:

regression

problem with direct mail in Chile

sender pays part of the mailing fee and receiver has to pay the other part

Marketing

serves as an arbitrator between productive capacity and consumer demand

Listening

single most important activity of negotiations

Getting to Yes

single most important book on topic of negotiation

Noise

step in the international communication process that is related to uncontrollable and unpredictable influences that can confuse or distract from the process

All good negotiation occurs on 2 levels:

substance and procedure

Apartment houses in an area were selling for $100,000 and a buyer offered $100,000 for an apartment building. The buyer is operating on the principle of:

substitution

The most common form of negotiation depends upon:

successively taking — and then giving up —a sequence of positions.

Accomodation Management Style: - Variations - Benefits - Disadvantages

Variations: - Open - Not acknowledged Benefits: + Preserves relationship + When you are in a position of weakness Disadvantages: - May lose face - Others perceive you as weak or unresponsive

Compromise Management Style: - Variations - Benefits - Disadvantages

Variations: - Openly acknowledged - Tacit coordination Benefits: + Each party gets something they need + Can build relationship + Others perceive you as competent Disadvantages: - May lead to lower levels of commitment to the solution - Glass half empty

What is a negotiator's motto?

Vive la differencia

Commonwealth

Voluntary form of Political Union

Book Contract

WE are the ones who should make first offers. First offers are so important because it allows you to establish the anchor. There is a HIGH correlation between the anchor and the final price

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company and is called:

Warehousing

Why should we ask "why not?"

We need to think about their choice

A principled negotiator can deal with each of these.....: Don't attack their position, look behind it

When the other side sets forth their position, neither reject it nor accept it. Treat it as one possible option. Look for the interests behind it, seek out the principles which it reflects, and think about ways to improve it. Don't defend your ideas, invite criticism and advice, Recast an attack on you as an attack on the problem. When the other side attacks you personally — as frequently happens — resist the temptation to defend yourself or to attack them. Instead, sit back and allow them to let off steam, Ask questions and pause

Where should you open a Distributive negotiation

With a number that is very favorable to you; that gives you room to make concessions before reaching your RP.

Deeds of conveyance should be recorded within what period of time after closing?

Within a reasonable period of time.

4 principles of Principled Negotiation (or negotiation on merits):

[P] People: separate the people from the problem [I] Interests: focus on interests, not positions [O] Options: generate a variety of possibilities before deciding what to do [C] Criteria: insist that the results be based on some objective standard

When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called:

a balloon payment

Integrated Marketing Communications

advertising sales promotions trade shows personal selling direct selling PR

The zoning commission of Jefferson County requires that all new construction in a specific area adhere to a specific type of architecture. What type of zoning is this?

aesthetic

Mark Whittaker is selling his house near Wimberly so he can relocate to Florida for a new job. Unfortunately, he has been in the house only slightly longer than 2 years and has not built much equity. Two years' time has increased the house's value by $2,500 -- the same amount that he has paid towards the principal of his loan. The balance on his mortgage is about $87,900. Mark's lender calls the balance due at the sale of the property, What is this action called?

alienation clause

The maximum permissible "loan to value ratios" are:

based on sale price or appraised value, whichever is lower

how do deal-minded and implementation-minded negotiators differ on: info sharing

deal-minded negotiators hold back info and fail to correct mistaken impressions

Some common tricky tactics include:

deliberate deception,less than full disclosure is not the same as deception,psychological warfare,stressful situtations, personal attacks, good guy/bad guy routine,threats,position pressure tactics, refusal to negotiate,extreme demands, escalating demands,lock in tactics,hardhearted partner, calculated delay,take it or leave it, o Deliberate Deception o Psychological warfare o Positional pressure tactics Deliberate deception (phony facts, ambiguous authority, dubious intentions) Psychological warfare (stressful situations, personal attacks, good guy/ bad guy routine, threats) Positional pressure tactics (refusal to negotiate, extreme or escalating demands, lock-in tactics, hardhearted partner, a calculated delay, "take it or leave it")

Hard bargaining emphasizes

dominance over a soft negotiator. sees any situation as a contest of wills in which the side that takes the more extreme positions and holds out longer fares better. He wants to win; yet he often ends up producing an equally hard response which exhausts him and his resources and harms his relationship with the other side.

The MacArthurs own a two-family flat in a declining section of Houston. Each section of the flat has 2 bedrooms and 2 bathrooms in addition to ample storage space and an "extra" room (8' x 10') that could be used for storage, laundry, or a small office. An electrical tower was erected on the lot adjacent to the flat about one year ago. The MacArthurs need to find a new tenant to lease the second side of their flat and are afraid the electrical tower will deter potential tenants with children as well as those who consider the tower to be an unsightly affront to the landscape. Which term best describes this situation?

economic obsolescence

Brownsville boasts a paved 2 mile hiking and bicycle trail that is popular with fitness enthusiasts all year long. Recently, the state legislature voted to approve a 3 mile extension to the trail. The path of extension will run through the east side of Windemoor subdivision, the only private property affected by the development plans. Most of the property owners have already sold land to the city to support the project, but one homeowner is holding out, grousing that losing the small strip of land on the east side of his property will make his landscaping look lopsided and decrease the overall desirability of his property. What can the city do if the disgruntled owner absolutely refuses to sell?

expropriate it

The most any method of negotiation can do are to meet two objectives:

first, to protect you against making an agreement you should reject and second, to help you make the most of the assets you do have so that any agreement you reach will satisfy your interests as well as possible.

Personal care, automotive, food

top three industries when it comes to spending on global advertising

Maastricht Treaty

treaty that created European Union

Treaty of Rome

treaty that established the European Economic Community (EEC)

An owner was building a house for himself. Due to personal preference, he decided not to put in a bathtub. This would result in:

functional obsolescence

Industrialization

fundamental objective of most developing countries

Big Emerging Markets (BEMs)

geographically large significant populations represent sizeable markets for a wide range of products have strong rates of growth or the potential for significant growth have undertaken significant programs of economic reform major political importance "regional economic drivers" further expansion in neighboring markets

Nontask sounding

getting to know the people you are negotiating against

French negotiation styles

highest percent of threats and warnings in negotiation

MDCs

industrialized countries with high per capita income

LDCs

industrially developing countries just entering world trade with relatively low per capita income

LLDCs

industrially undeveloped countries, agrarian, subsistence societies with rural populations, extremely low per capita income and little world trade involvement

Listen actively List potential issues as you hear them

•List Interests as you hear them—known and discovered •List key words or phrases that may lead to an Interests—as you let them continue talking, then come back to this later if need be

Objective criteria

•Market Value •Precedent •Scientific Judgment •Professional Standards •Efficiency •Costs •What a Court Would Decide •Moral Standards •Equal Treatment •Tradition •Reciprocity •Etc.

Negotiating talent pays

•Men who negotiate receive 4.3% higher salaries than men who do not. •Women who negotiate receive 2.7% higher salaries than women who do not. •Assume $50,000 base pay, 3-4% raise each year for 50 years...and the difference? •Negotiating men receive $1,714,779 more. •Negotiating women receive $1,040,917 more.

The primary purpose of Truth in Lending is to:

Disclose the true costs of obtaining credit.

Never yield to pressure

"Pressure can take many forms: a bribe, a threat, a manipulative appeal to trust, or a simple refusal to budge. In all these cases, the principled response is the same: invite them to state their reasoning, suggest objective criteria you think apply, and refuse to budge except on this basis. Never yield to pressure, only to principle." (p. 91)

The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to occur on June 15, 2011. The taxes for the year 2011 in the amount of $2,500 have not been paid by the seller. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it appear on a full settlement statement? Base your answer on a 365 day year, and the buyer is responsible for the day of settlement.

$1,130.14 debit the seller and credit the buyer The seller would owe money, and the buyer would receive money, because the seller has not paid the taxes. $2,500 divided by 365 is $6.849315 times the actual days of 165 is $1,130.14.

The Pickets are purchasing a home for $78,000 and the lender is giving them a 90% loan at 10% interest, plus a 2% loan origination fee. How much is the loan origination fee?

$1,404 A loan for 90% of the $78,000 purchase price results in a $70,200 mortgage. Since the origination fee is based on the amount of the mortgage, not the price of the home, the fee is 2% of $70,200 or $1,404.

Canyon Properties in Killeen, Texas owns a two-family dwelling that generates a 12.5% return on its value, or an annual return of $17,000. What would the value of this property be in terms of an income approach to value?

$136,000 An income approach estimates the value of a property based on its monetary returns (or the returns it could be expected to generate). In this case, the calculation is completed by multiplying the amount of investment returns ($17,000) by the multiplier 8 (because 100% is divisible by 12.5% exactly 8 times). The product, and estimated value of the property, is $136,000.

After breaking up, Don Kranz and his girlfriend Maggie Stuart sold their ranch in Uvalde for $230,000. After paying off an existing loan balance of $78,000 and remitting a 7% commission to their real estate salesperson, Don and Maggie each walked away from the transaction with proceeds of $66,200. How much did the realtor earn in commission (to the nearest dollar)?

$16,100 The real estate agent's 7% commission is calculated by multiplying the total sale price of the ranch before any deductions are made for loan payoffs, closing costs, or seller proceeds ($125,000) by a factor of 7% (or .07). The product is $16,100.

Examples of BEMs

India, China, Brazil, Mexico, Poland, Turkey, South Africa

Susannah Hudson is expecting Premier Mortgage to underwrite the mortgage loan for her beachfront bungalow in Galveston. The maximum housing expense-to-income ratio is set at 35% of gross monthly income. Susannah's annual salary as a Physician's Assistant is $98,000, which is expected to continue and increase at a cost-of-living rate. What would be the maximum monthly PITI for Susannah?

$2,858.33 To calculate the maximum PITI (principal, interest, taxes, and insurance) allowed for Susannah under the underwriter's maximum housing expense-to-income ratio, take the amount of her annual salary and divide by twelve to obtain her gross monthly income ($8,167). Then multiply her gross monthly income by a factor of 0.35 (35%) to determine the maximum monthly PITI.

Prior to issuance of an inspector's license, a newly approved inspector must remit what amount to the Real Estate Inspection Recovery Fund?

$200

A scale drawing shows a room to be 3 inches by 4 and a half inches. Carpet, which is $15 per square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?

$360 At a scale of 4' to the inch, the room measures 12' x 18' or 216 square feet. Since there are nine square feet to one square yard, the room will require twenty-four square yards of carpet at $15 per yard.

A tenant leased 3000 square feet at $10 per square foot and 8% of gross income. The total annual rent she paid was $60,000. What was the gross income on which she paid percentage rent?

$375,000 At $10 per square foot, the tenant's base rent is $30,000. Since the total rent was $60,000, that means the remaining $30,000 was due to the gross sales percentage. Since that figure is 8%, simply divide $30,000 by .08 to arrive at $375,000.

Jane and Ryan Vandenbrenner obtain an FHA loan to purchase their first house. The home they wish to buy is listed for $82,800 but the sellers accept the Vandenbrenner's offer of $81,500. They will make a down payment of 3% on the house. Closing fees, will total $1,630. The lender requires an upfront MIP of 1% which the Vandenbrenners will pay at closing along with their down payment and closing costs. For what amount should they make the cashier's check for closing?

$4,866 At closing, the Vandenbrenners will need to present a cashier's check for $4,866. A 3% down payment on the purchase price of $81,500 comes to $2,445. An upfront mortgage insurance premium (MIP) of 1% on the amount financed (purchase price - down payment, or $79,055) comes to $790.55 (rounded to $791). The cashier's check will total $4,866 when $1,630 (closing costs), $2,445 (down payment), and $791 (upfront MIP) are added together.

Payments from the Real Estate Recovery Fund are limited to what aggregate amount for claims arising from a single transaction?

$50,000

On a $50,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender?

$51,000 One point equals one percent; thus two points are two percent of $50,000, or $1,000, which becomes part of the buyer's total obligation to the lender

The sellers listed their property for six months on February 26 for $104,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $102,000. The seller countered the offer on April 1 at $103,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?

$7,245. Debit the seller.

The buyer and seller agreed to a purchase price of $103,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement?

$82,800. Credit the buyer only. Mortgage monies are credited to the buyer's side of the ledger as a portion of the funds he or she will use to complete the transaction. Once all the funds have been accounted for, the monies (less appropriate deductions) transfer to the seller.

When talking about your interests...keep in mind...interests come alive

*When talking about your interests, keep in mind that you need to explain them in detail (be specific) + demonstrate appreciation for their interests in return

An alternative model of conflict management:

- A feminist view of conflict - e.g., their model replaces concepts from the exchange model such as trades, mutual gain, settlement, and information exchange with alternative feminists concepts of "mutual inquiry" "mutual understanding" "transformation" and "sharing experiences"

There are 3 stages to Principled Negotiation:

- Analysis: try to diagnose the situation - Planning: plan and come up with additional options and additional criteria - Discussion: the actual communication and negotiation back and forth, looking toward agreement

With this Ideal model of COnflict management, what does the graph look like? - Explain Degree of Convergence (how similar or close their positions are

- Begin at Differentiation Phase i.) There is an initial Degree of Convergence in Parties' Positions (start with some differences) ii.) corresponds to latent, perceived, and felt, conflict phases iii.) this degree slowly gets larger until it reaches its maximum point at the very end/Beginning of D/I iv.) when trigger happens--> conflict out in the open--> more and more divergence happens v.) at a certain point we acknowledge there are differences and that they need to be addressed to move on (this is at the maximum point of difference) - Then Move to Integration Phases i.) in order to get here, must differentiate and understand differences (which may be unpleasant) ii.) also must realize you cannot force your opinions on one another iii.) this allows them to reach a mutually benneficial solution

Emotion Problem

- First recognize and understand emotions, theirs and yours - Make emotions explicit and acknowledge them as legitimate - Allow the other side to let off steam - Don't react to emotional outbursts: adopt the rule that "only one person can get angry at a time" - Use symbolic gestures

Criteria for selecting a conflict style

- Importance to self - Importance to other - Importance of maintaining positive relationship with the other - Time pressure - Degree of trust in the other

So...According to the normative model (if we go through the conflict phases) what is the best route to take when going through these phases? - I.e., what is the Ideal Model for Conflict Management?

- It has 2 phases 1) Consists of Differentiation & - parties bring out differences - become aware that the other party will not give in 2) Integration - at a certain point these differences begin to be addressed - work on a mutually beneficial solution

Phases of conflict (5 phases that conflicts go through): A Descriptive Model

- It is a cycle 1) Latent : grounds for a conflict exists because parties have incompatible goals - the two parties are not aware that there is an issues - once conflict is perceived --> 2) Perceived Conflict Phase - eventually begins to feel it (personalize)--> 3) Felt Conflict: beginning to work out in ones head the emotion - what ones interfering behavior implies for the other - there will be some sort of triggering incident --> Manifest 4) Manifest Conflict: - could take form of a shouting match - 5) Restabilization (this is the aftermath) - can have 2 possible routes out (Aftermath) 1) Has a Resolution 2) or back into Latent/Perceived Conflict Phase (continuous cycle)

A Positive Approach to Negotiation: "Getting to Yes" - Criteria for good negotiation

- It should produce a wise agreement, if agreement is possible - It should be efficient - It should improve (or at least not damage) the relationship between the parties

There are 3 Basic People Problems:

- Perception - Emotion - Communication

Principled Negotiation: Interests:

- The difference between interests and positions is crucial: interests motivate people; they are silent movers behind the hubbub of positions. Your position is something you have decided upon, while your interests are what caused you to decide. - You can ask for another's position, making clear that you do not want justification, just a better understanding their needs, hopes, fears, or desires that they serve. - The most powerful interests are basic human needs: security, economic well-being, sense of belonging, recognition, control over one's life - If you want the other side to take your interests into account, explain to them what those interests are - Make your interests come alive - be specific! - Acknowledge their interests as part of the problem - be sure to show your appreciate their interests if you want treatment in like kind - Put the problem before your answer: give your interests and reasoning first and your conclusions or proposals later - Look forward, not back: instead of asking someone to justify what they did yesterday, ask "Who should do what tomorrow?" - Be concrete but flexible: treat the opinion you formulate as simply illustrative - final decision to be worked on later - Be hard on the problem, soft on the people: show you are attacking the problem, not people - give positive support to the humans on the other side equal in strength to the vigor you emphasize the problem - this causes cognitive dissonance and in order for the other to overcome it they will be tempted to disassociate from the problem in order to join you in doing something about it

Communication Problem

- Whatever you say, you can expect that the other side will almost always hear something different - Sometimes, parties give up and talk merely to impress 3rd parties on their own constituency - Do not busy yourself with thinking of the next thing to say - if you are not hearing what the other side is saying, then there is no communication - Listen actively and acknowledge what is being said - Speak to be understood - put yourself in the role of being a co-judge working toward a common verdict - Speak about yourself, not about them: describe a problem in terms of its impact on you ("I feel let down" instead of "you broke your word") - Speak for a purpose: know the purpose of your outcome

Negotiation: Explain the Distributive Approach

- Win-lose - Maximize individual gains and minimize losses - Fixed sum (only limited amount of resources) - Communication consists of: i.) Information seeking; I try to find out things about what the other person really wants to use as a lever ii.) Selective misrepresentation of information; (not telling person exactly how much money you need) iii.) withholding (do not let people know true desires) - Fairly rigid relationships (not close friends within bargaining situations) - Outcomes include compromises, tradeoffs, win-lose outcomes (there are winners and losers) - Prejudice toward own group (you focus on yourself mainly)

Negotiation: Explain the Integrative Approach

- Win-win - parties Maximize joint gains - Variable sum; issues shaped by overlapping positions - Open communication and accurate disclosure of needs and information i.) so we can know what both parties want - More flexible relationship - Outcomes include creative solutions and joint satisfaction of needs - Focus on both groups' positions

Any method of negotiation may be fairly judged by 3 criteria:

- it should produce a wise agreement if agreement is possible - it should be efficient - it should improve or at least not damage the relationship

How does the alternative model differ from the traditional approach?

- this feminists model shifts the emphasis in conflict negotiation from one tat values exchange, problem solving, and rationality to one that considers considers, collaboration, dialogue, and emotion

An increase in the availability of money would lead to which effect?

Interest rates would go down

Perception Problem

-You must put yourself in the other person's shoes to understand the problem from their way of thinking. Feel the emotional force with which they believe in it. - Understanding is not the same as agreeing - one can understand perfectly and completely disagree - Don't deduce their intentions from your fears - Don't blame them for your problem: separate the symptoms from the person you are talking - Discuss each other's perceptions: often negotiating parties will dismiss concerns on the other side perceived as not standing in the way of negotiation - don't do that! - Look for opportunities to act inconsistently with their perceptions - Give them a stake in the outcome by making sure they participate in the process: in a sense, the process is the product - Face-saving: Make your proposals consistent with their values

A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?

10 acres One-eighth of a mile square is the same as 10 acres. Multiply 1/8 X 1/8 = 1/64 divided into 640 acres = 10 acres

A soft negotiator emphasizes

-emphasizes the importance of building and maintaining a relationship ... preserving the relationship & separating people from the problem; compromise -wants to avoid personal conflict and so makes concessions readily in order to reach agreement. He -wants an amicable resolution; yet he often ends up exploited and feeling bitter.

Integrative bargaining

-long term goals(relationship) -perceived compatible goals -focus on underlying interests -emphasis on intangibles -trust, openness and perceived strength •Expand the pie •The more you create, the less you need to claim to do well •Creating value •How do we create value? •Great potential - less predictable

Distributive Bargaining

-short term goals -perceived incompatible goals -focus on power/rights negotiations -emphasis on tangibles -mistrust, suspicion, defensiveness and perceived weakness •Fixed pie •Predictable Outcomes •Claiming value •How do we claim value?

"Negotiating Power" Relative power of each side is dependent on one question:

...

Reason and be open to reason. Reason is your friend •Almost everybody wants to appear reasonable. •Humility is the key virtue •Consider that you might be wrong and show you're open to persuasion

...

TALENT=POWER

...

^what does it sound like(reason) •"I have not yet reached a final decision and I'm open to persuasion." •"Why don't we study the matter and talk again?" •"Would you agree that ____ is reasonable?"

...

What are 4 of the 6 principles of Coalitions?

1. Coalitions begin for good reasons 2. Coalitions become the problem 3. Coalitions predict future conflict 4. Change a system by softening the coalition

what are the 5 conflict styles?

1) Avoidance - Low focus on Other's concerns and Own Concerns 2) Accomodation - High Focus on Other's Concerns - Low Focus on Own Concern's 3) Compromise - Moderate Focus on Other's Concerns & Own Concerns 4) Competition - High focus on Own Concerns - Low Focus on Other's Concerns 5) Collaboration - High Focus on Own and Other's Concerns

Which Conflict Styles are the Distributive/Integrative Approach Related to?

1) Distributive: - Competing - Contending i.) go out to defeat other person 2) Integrative - collaboration or problem solving 3) For both: - neither are similar to avoidance or accomodation - can both end up in compromise

Normative Model of Conflict Phases: - Escalation and avoidance cycles versus - middle ground, integrative route

1) Escalation: going through cycles of escalation - e.g., begin with shouting, then fighting during next conflict - very negative - can lead to situations in which conflict spirals out of control - occur because of INTERPERSONAL REFLEX (people method of interpersonal interaction) i.) you match negative with negative responses and positive with positive responses 2) Avoidance Cycles: people are avi - sometimes both parties avoid, sometimes one all with the hope of keeping the conflict into the open--> conflict never addressed and it festers - underlying problem still there--> problems in the future 3) Middle (confrontative) Ground: both addressing conflict and keeping it from spiraling out of control (+ from a normative perspective)

Dimensions underlying the classification (figure 9.1) 1) Latent

1) Grounds for conflict exist because parties are interacting in Interdependent relationships in which incompatible goals are possible

Definition of conflict (3 I's)

1) Interaction 2) Interdependence 3) Incompatible goals - The Interaction of interdependent parties who perceive incompatible goals and interference from each other in achieving those goals

Generating possible BATNAS requires what

1) Inventing a list of actions you might conceivably take if no agreement is reached. 2) Improving some of the more promising ideas and converting them into practical alternatives 3) Selecting, tentatively, the one alternative that seems best.

How do you know it's objective?

1) Is it independent of each party's will? 2) Does it apply equally to both parties (the test of reciprocal application)? 3) Is it supported by a legitimate theory?

Third Parties: Managerial third-party conflict resolution roles

1) Mediator - doesn't control or have any direct influence over outcome - can influence process by which 2 parties reach a decision - very common in legal system - ultimate goal is to find a solution that is good for all parties 2) Arbitrator - has power to make decision themselves - they work with 2 parties, then either gives ruling/decision or try to get the parties to solve it themselves but if they can't the arbitrator makes the final decision - a common type: managers - very common in sports

Third Parties: Process for third party intervention (5)

1) Orientation - get the facts of the conflict in order 2) Background - do some research possibly 3) issue processing - getting parties to tell their story (from both sides) - may write interests and goals of individuals 4) Problem Solving - define goals, generate option, evaluate--> 5) Resolution - get parties together, determine a solution - think about ways to enforce decision - have something formal that finalizes the decision and signifying that parties are expected to live by this decision

A positive approach to negotiation: Principles of Effective negotiation (5)

1) Separate the people from the problem - avoid focusing on another person, focus on the problem in front of you 2) Focus on interests, not positions - e.g., don't say "i need this amount of money" instead say "I specifically need to do this for my car" 3) Invent options for mutual gain - important to generate a wide variety of options with the other person, get them involved--> they buy into it more, and have more of a cooperative relationship 4) Insist on fair, objective criteria for determining which options should be selected - you should not argue for options based on preference, but rather have objective evidence - e.g., search on google for evidence about which of the options work best (as opposed to personal preference 5) Have a BATNA (best alternative to a negotiated agreement) - this is your alternative if your first negotiation does not work - this provides a way to avoid being pressured into something you do not want

Competition Management Style: - Variations - Benefits - Disadvantages

1) Variations - Contending - Winner take all competition - Passive Agressive 2) Benefits - Own Needs met - Quick - Decisive 3) Disadvantages - Damage to future relationship - Becomes Habitual

Avoidance Management Style: - Variations - Benefits - Disadvantages

1) Variations: - Protecting - Withdrawing - Smoothing 2) Benefits: + When need to calm down (temporary response) + When you are in a position of weakness + May help you save face 3) Disadvantages: - Low levels of satisfaction - Others perceive you as weak or unresponsive

4 Strategies for making concessions

1) label your concessions *rules to labeling - let it be known what you have given up is costly to you(this lets the other party know a concession was in fact made) -Emphasize the benefits to the other side -don't give up your original demands to hastily 2) demand and define reciprocity Let the other party know you have made a Concession, and tactfully demand reciprocity. Identify what concession you need in exchange for the one you made 3) make contingent concessions We can provide additional support but only if you agree to purchase some of the following additional services," or, "This is literally the best we can do on price right now. But if you can adjust some of your demands, we might be able to reopen the price issue." 4) make concessions in installments Instead of covering the difference demanded on a house at once ie:40,000 first make a concession of 30,000 then 10,000. Sometimes the first concession will even be enough!

Major obstacle that inhibits the inventing of an abundance of options

1) premature judgment; (2) searching for the single answer; (3) the assumption of a fixed pie; and (4) thinking that "solving their problem is their problem." In order to overcome these constraints, you need to understand them.

Criticisms of conflict styles (4)

1) the grid approach downplays the extent to which individuals change their tactics during interaction with others in conflict situations 2) the 2 dimensional nature: issues other than concern for others and concern for self may influence a conflict interaction 3) conflict styles has downplayed the important roles that non-verbal and non-rational communication might play in conflict management 4) role of the organizational setting is ignored

Full assessment of a conflict can best be accomplished by which three steps? What are the three key concepts of system thinking?

1. Assesing the workings of the overall system 2. Determining recurring patterns inside the system 3. Identifying individual contributions

What 5 suggestions do the authors of the text give for dealing with the emotions.

1. First recognize their and your emotions 2. Make emotions explicit and acknowledge them as legitimate 3. Allow the other side to let off steam 4. Don't react to emotional outbursts 5. Use symbolic gestures

When negotiating with objective criteria it is important to remember three basic points; list two of the three points to remember.

1. Frame each issue as a joint search for objective criteria 2. Reason and be open to reason 3. Never yield to pressure

Seven steps to develop international advertising

1. Perform Marketing Research 2. Specify the goals of the communication 3. Develop the most effective messages for the market segments 4. Select effective media 5. Compose and secure a budget 6. Execute the campaign 7. Evaluate the campaign relative to its goals

[Your Answer to number 1] presumes the following 4 assumptions.

1. Persons engage in the conflict rather thank avoid 2. Parties resist using power-over tactics 3. People use persuasive communication 4. Parties have reached an active problem solving phase

1. What are three of the four major obstacles that inhibit the inventing of an abundance of options?

1. Premature judgment 2. Searching for the single answer 3. The assumption of a fixed pie

What are the four steps in the circle chart?

1. Problem 2. Analysis 3. Approaches 4. Action Ideas

What are the three criteria for judging a negotiation fairly?

1. Produce a wise agreement 2. Efficient 3. Improve relationships between parties

What are the most powerful interests? List two.

1. Security 2. Economic well being

Four steps that lead to more efficient international negotiations

1. Selection of appropriate negotiation team 2. Management of preliminaries 3. Management of the process of negotiations 4. Appropriate follow up

What are two of the three points of shared interests that are worth remembering?

1. There are always shared interests 2. They are opportunities 3. Stress your shared interests

Name 3 types of marriages described by Cuber and Haroff (1955). And two elements that determine the different types of couples described by Rands and Levinger (1981)

1. Vital Relationships 2. Total marriages 3. Devitalized Marriages 1. Intimate-aggressive 2. Intimate-nonaggressive

Position and association

1.Build a relationship with someone in a position of power 2.Join Associations •Shared Interests - Pooling of resources and a Stronger Voice

How do I insist on using objective criteria?

1.Frame each issue as a joint search for objective criteria. 2.Reason and be open to reason. 3.Never yield to pressure—refocus their pressure toward finding a solution using an objective criteria

Lists 4 of the 5 principles on the Collaboration Checklist.

1.Join with the other 2. Control the process, not the person 3. Use principles of productive communication 4. Be firm in your goals and flexible in your means

Mistaken views of negotiating power

1.Physical Force = Negotiating Power 2.Start adversarial...you can always go soft later 3.Creating a false impression in the minds of others (bluffing, deceit, misrepresentation)

How do you "go to the balcony"

1.Separate Yourself from the Problem 2.Separate the Other People from the Problem

Sources of negotiating power

1.The Power of Talent 2.The Power of Relationships 3.The Power of Alternatives 4.The Power of Preparation 5.The Power of Legitimacy 6.The Power of Ideas 7.The Power of Persistence 8.Control Over Resources 9.The Power of Time 10.A Seat at the Table

Dimensions underlying the classification (figure 9.1) 2) Perceived

2) One or more parties perceive that their situation is characterized by incompatibility and interdependence

How much notice must a landlord give a delinquent tenant, in writingm before filing an action to evict?

3 days

Dimensions underlying the classification (figure 9.1) 3) Felt

3) Parties begin to personalize perceived conflict by focusing on the conflict issue and planning conflict management strategies

Estimating the value of a house by taking the reproduction or replacement cost of the building, minus depreciation, plus the value of land would be classified as what type of approach to valuation?

A Cost Approach

A real estate licensee has a buyer agency agreement. What is the seller in this situation?

A Customer

A borrower bought a $74,000 house with no down payment. The loan was probably:

A VA loan VA loans are zero-down instruments, while FHA loans permit low down payments in the 5% range.

What is negotiation?

A formalized mode of conflit management involving exchanged of offers within the framework of shared rules to reach joint setlements

Which statement best describes a VA loan?

A) A loan funded through the U.S. Department of Veterans Affairs for qualified veterans on approved properties B) A loan backed by the U.S. Department of Veterans Affairs which offers veterans and service personnel the opportunity to buy a home with favorable terms, often with no down payment requirement (Correct) C) A variable adjusted rate mortgage that adjusts monthly to reflect the prevailing legal interest rate D) A loan insured by the Department of Housing and Urban Development which offers low-income people the chance to become a homeowner

Which of the following is true of income earned by separate property in Texas?

A) All earnings from community property and seperate property are presumed to be community property. (Correct) B) The income is considered seperate property. C) The income is not subject to taxes. D) Half of the income is presumed to be community property, while the other half of the income is considered seperate property.

Forms specific to the nature of a wide variety of real estate transactions are promulgated through the Texas Real Estate Commission and must be used in all but a few circumstances. All of the following scenarios EXCEPT which one represent circumstances exempt from the use of TREC promulgated forms?

A) Barnhart licensee Lisa Weimereinner is acting as a principal in the sale of her townhouse. B) Licensee Yon Gutierrez is facilitating a sale of government property for which the government entity requires its own form. C) Millicent Kelly, a homeowner offering property for sale by owner, requires the use of a form prepared by her attorney. D) Orlon Smith, a licensee, is assisting the Murnans in arranging to move into their new house two weeks before the closing. (Correct)

Which best describes why a buyer purchases a home using the market data approach?

A) Buyers buy on impulse B) Buyers buy based on how much income can be derived from other property C) Buyers buy after they compare the house with others (Correct) D) Buyers buy based on current construction costs

A broker can communicate to clients the availability of a trust to pay damages to aggrieved persons in which of the following ways?

A) By informing them verbally at first substantive contact B) Through writing via a receipt for professional services, a sign posted in the licensee's place of business, or on a brochure distributed by the licensee (Correct) C) In writing when a client makes a formal grievance complaint to the broker D) By directing them to the web site of the Texas Real Estate Commission

Which of the following is NOT true of the educational requirements a candidate for licensure must meet?

A) Candidates must complete coursework that includes, at a minimum, courses in promulgated contracts (including use of current forms) and residential inspection (including an overview of electromechanical systems and structures). B) Upon completion of the required number of hours of attendance at the prescribed courses, the candidate must pass a final course examination, either written or electronic, before the candidate can be considered to have passed the course. C) Course credits awarded by an accredited college or university for life experience or by examination are acceptable in lieu of core real estate courses. (Correct) D) Any course offered by alternative delivery methods such as correspondence or computer delivery, must teach to mastery as prescribed by the commission and follow curriculum development guidelines outlined by the commission.

When can a landlord evict a disabled blind or disabled tenant from the premises?

A) If the tenant gets a dog and the apartment policy does not allow pets B) If the tenant insists on a handicapped parking place C) If the tenant makes modifications to his unit at his expense D) If the tenant has loud parties and makes too much noise (Correct)

Adam Zappa engages CharTipton of Yellow Rose Realty to list his property in Del Rio. After Char provides a market analysis to determine the estimated value of Adam's house, they decide on a listing price of $117,000 and Adam gives Char an exclusive right to sell. Adam confides to Char that he would be happy to get $115,000 since he bought the property for $95,000 three years earlier. Which of the following actions must Char take?

A) Char must disclose Adam's willingness to accept $115,000 to the broker of any prospective buyer. B) Char must list the purchase price in all advertisements as "$117,000 but willing to negotiate." C) Char must refuse any offers below the asking price in an effort to protect the best interests of her client. D) Char must keep Adam's disclosure confidential. (Correct)

Bill Thierauf is a licensee in Mesquite. Although he is an outgoing and engaging man known for setting clients at ease and smoothing ruffled feathers, he makes constant substantive errors in anything involving mathematical calculations. After a client won a $15,000 award from the recovery fund due to Bill's incompetence, Bill is facing certain discipline. Which of the following options would NOT be available to the commission in pursuing disciplinary action?

A) Charge Bill with a class A misdemeanor for negligence (Correct) B) Revoke Bill's license until he has remitted the full cost of the $15,000 award paid out of the trust account, plus interest at a legal rate C) Limit the scope of Bill's practice to the marketing and showing of properties, ensuring that he doesn't have the opportunity to make any more costly mathematical errors D) Require Bill to report regularly to the commission during a period of probation

Which of the following is considered a conventional loan?

A) FHA insured B) VA guaranteed C) commercial bank's ARM loan (Correct) D) contract for deed

Connie Hart is a licensed real estate salesperson working at a small brokerage in Amarillo. Which of the following functions can she NOT perform without an agency agreement in place?

A) Helping prospective buyers find the right ranch house in Amarillo B) Assisting prospective buyers in obtaining a loan for their desired house C) Preparing a contract for a transaction D) Holding monies for disbursement in escrow until closing (Correct)

Mark Carey is a real estate licensee who works as a residential rental locator for an El Paso property management company. In preparing advertisements of available properties, he must adhere to all of the following guidelines EXCEPT which one?

A) If listing general amenities for a variety of units, the advertisement must include verbiage advising consumers that rent may vary depending upon the specific features and amenities of a given unit. B) Advertisements placed in a publication that receives an advance/contingent fee must include a disclaimer to that end. (Correct) C) For units advertised in general terms, at least one unit meeting the description should be available through the locator at the lowest rent stated in the advertisement within either a time stated in the advertisement or within 30 days after the advertisement is submitted for publication (if no time is stated). D) Advertisements placed where passersby and motorists are likely to notice must clearly and visibly identify the publisher of the advertisement as a real estate broker or agent.

A landlord of residential property must provide all of the following EXCEPT:

A) Rekeying a unit with seven days of a new tenant occuping the unit B) Ensuring that the smoke detectors are fuctional when the unit is rented C) Providing keyless deadbolt locks for each unit D) Installing a burglar alarm system or other protective apparatus in a unit in a documented high-crime area when the occupant requests the protection. (Correct)

As a broker acting as an intermediary to the sale of a single-family dwelling, Sean Noonan would be acting unlawfully and unethically if he discloses any of the following information EXCEPT:

A) That the seller will accept $5,000 less than the asking price B) That the buyers are able and willing to pay $5,000 more than the asking price C) That the sellers are in dire financial straits, on the verge of bankruptcy, and need to sell immediately even if they have to sell at a loss D) That both parties have agreed to pay a portion of the broker's compensation (Correct)

Standard forms promulgated by the Texas Real Estate Commission exist for all of the following sales EXCEPT which one?

A) The Veterans Administration is asserting entitlement to restoration. B) Construction is not yet finished on a new home. C) Construction is complete on a new home. D) A large lot is intended as a future site for a multi-family (5 or more) residence complex. (Correct)

The Hudson family has listed their 5 bedroom, 3 bath house with Townsend Realty for $175,000 -- an excellent value for the spacious home with eat-in kitchen, formal dining room, finished basement/rec room, 3 car garage, and above-ground pool. The Wright family offers $169,000 because the house will need a new roof within the next year or so. The Hudsons make a counteroffer of $172,250 with the comment that they have just updated the central air and furnace systems in the past six months. The Wrights are considering the counter offer. Which of the following could happen next?

A) The Wrights could reject the counter offer and make one of their own. (Correct) B) The Wrights could reject the counter offer without making a new offer. Then the Hudsons could say they'll accept the previous offer of $169,000. C) The Wrights could reject the counter offer. The Hudsons would then have 24 hours to reconsider the $169,900 offer again. D) The Wrights could reject the counter offer. The Hudson's realtor could then write up the previous $169,900 offer as a back-up contract.

Mortgage "discount" points only apply if which of the following conditions are met?

A) The interest rate on the mortgage loan has been lowered by 1% for each point charged (Correct) B) The interest rate on the mortgage loan has been lowered by 2% for each point charged C) The seller has agreed to pay 1% of the closing costs D) The loan does not close and the buyer owes the lender for services rendered

The Texas Real Estate Commission retains which of the following powers?

A) The power to conduct licensure examinations for candidates seeking salesperson or broker's licenses B) The power to probate, suspend, or revoke a license or reprimand or place on probation a licensee for a violation of the Act or a rule of the commission (Correct) C) The power to recommend individual licensees to the public D) The power to mediate disputes between or among licensees concerning entitlement to sales commissions

In judging whether previous felony or misdemeanor offenses committed by a candidate for licensure would render the candidate incapable of acting on behalf of others with honesty, trustworthiness, and integrity, the commission may take into account all of the following pieces of evidence EXCEPT which one?

A) The scope and substance of the candidate's criminal offenses B) The candidate's age at the time the crime was committed C) A comprehensive independent audit of the candidate's financial status to ensure suitability as a fiduciary (Correct) D) Evidence of the candidate's rehabilitation and present fitness, including letters of recommendation from law enforcement and corrections personnel

All of the following are true of conventional loans except what?

A) They are made to the buyer without governmental insurance or guarantee B) The policy requiremets of the lender are not uniform C) The requirements to qualify are uniformly fixed by state law (Correct) D) They require a higher down payment than non-conventional loans

The Hancocks, residents of McAlester, Oklahoma, have a premium parcel of undeveloped land that stretches from Oklahoma into Texas. Which of the following is true if they wish to sell the land?

A) They must engage the services of a licensed Texas real estate salesperson because at least part of the property is located in Texas. B) They must engage the services of a licensed Texas real estate salesperson only if the buyer is a Texas resident. C) Since they are not Texas residents, they are not obligated to engage a Texas real estate licensee to sell the property. (Correct) D) They must engage the services of a real estate agent in the state in which they reside.

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to:

A) any approved lending institution such as a bank or savings and loan association (Correct) B) an FHA appraiser in the area C) the Federal Housing Administration Office D) the Federal National Mortgage Association

Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $500 per month. It is a custom-built home, approximately three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?

A) cost approach B) market data approach (Correct) C) income approach D) gross rent multiplier

Which of the following bears a caveat emptor -- buyer beware -- warning?

A) deed in lieu B) contract for deed (Correct) C) general warranty deed D) grant deed

Ash Mason owns a home with an expansive lawn in the Dallas suburbs and has decided to install an in ground pool for recreational and health purposes. She has chosen non-slip pavers for the perimeter of the pool (to reduce risk of falls and, thereby, her liability as property owner) and plans to add a deck at one end of the pool for lounging. Which of the following factors should she consider most carefully in deciding whether or not to erect a fence around part or all of her backyard?

A) her privacy B) aesthetics and how the fence might make the lawn look smaller C) possibility that the pool might be an attractive nuisance (Correct) D) potential that neighbors might seek an easement to use the pool

The intent of the Seller's Disclosure Notice is to do which of the following?

Disclose any known structural defects

A standardized yardstick expressing the true annual cost of borrowing is expressed as the what?

APR

The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon a default by a mortgagor is called:

An Acceleration Clause

What are the three stages of brainstorming?

Before, During, after

What is BATNA?

Best alternative to a negotiated agreement

BATNA

Best alternative to a negotiated agreement •BATNA is a source of power •Your BATNA is alive! •It is always in flux •Constantly work to improve it

By what date must the current year's real estate taxes be paid in order to avoid a penalty and interest on the taxes?

By January 31 of the next year.

Lack of knowledge based noise •Data Overload •Assumption

Data Overload •party is overwhelmed with too much information too fast. •too technical or intellectual for their full comprehension •Or it makes no sense

how do deal-minded and implementation-minded negotiators differ on: closing techniques

Deal-minded negotiaters create artificial deadlines, threaten escalation, and make "this day only" offers

how do deal-minded and implementation-minded negotiators differ on: decision-making and stakeholders

Deal-minded people keep outsiders in the dark. Implementation-minded people ask: what approval is needed? what might interfere with implementation?

Blame •Direct Blame •Indirect Blame

Direct Blame •Assigning blame for the party's own behavior or circumstances directly to the other party in the conflict, or on their words and/or actions. Indirect Blame •Assigning blame for the party's own behavior or circumstances to anyone or anything besides the other party in the conflict or their words or actions.

DR-CAFTA

Dominican Republic and Central America Free Trade Agreement

Discrimination is prohibited in lending practices under:

ECOA- Equal Credit Oppurtunity Act

A common error of assumption in diagnosing a negotiating situation is to assume what about the other side?

Each person on the other side has the same interests

A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?

Enforceable

Who is the largest purchaser in the secondary market?

Fannie Mae

When dealing with emotions you should

First recognize and understand emotions, theirs and yours, Make emotions explicit and acknowledge them as legitimate. Talk with the people on the other side about their emotions. Talk about your own, Allow the other side to let off steam, don't react to emotional outbursts, Use symbolic gestures.

Customs Union

Free trade area's reduced or eliminated internal tariffs and adds common external tariff to outside countries

TOOL #4 Identify Value Creating Trade-offs

Identify Value Creating Trade-offs •The search for trade-offs helps you avoid compromise. •Trade-offs occur when you exchange your lower priority issues for your higher priority issues. •Key Diagnostic Question: "Where do our interests differ?" Resources Do you and the other side have different assets that you could trade? Examples: Exchange lawn mowing for lower rent Exchange higher home price for a new roof Relative Valuations Are there things that are valuable to you but less valuable to the other side, and vice versa? Examples: Trade 10% Financing for 30 Month Warranty Trade a better title for a windowless office Time Preferences Do you have different needs concerning when things happen or don't happen? Are there differences in short-term versus long-term interests? Examples: Buyer cares more about the present. Seller cares more about the future. Installment Plan: Buy item now, pay more in the future! Forecasts Do you have different predictions about some future event that you could bet on? Examples: Unproven author and publishers Exchange lower advance for larger royalties

"$10,000 club" issue

If a company fails to appreciate the strategic implications of it, it will miss the opportunity to participate in the world's fastest growing global consumer segment

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support?

If the parent was relying on the income for repayment of the loan

how do deal-minded and implementation-minded negotiators differ on: Surprise?

Implementation minded negotiaters don't like surprises.

how do deal-minded and implementation-minded negotiators differ on: realistic commitments

Implementation minded negotiators consider "if they fail to deliver, then we don't get the value we expect"

Every Negotiator has two kinds of interest: name them.

In the substance and relationship

Treaty of Amsterdam

Increases the authority of the EU and is designed to accomodate the changes brought about by the monetary union and the admission of new members

Power based noise -influence assertion -revenge

Influence Assertion •Party asserts his own or someone else's credentials, affiliations or abilities in order to gain recognition for his own perspective. Revenge •Revenge: party expresses a commitment, in any small or large scale, to righting what they perceive is wrong. Commitment to action or even just faith creates a noise factor that will impede the productive flow of communication.

_________________________, "done properly, may in fact be the heart and soul of modern-day interpersonal problem solving and conflict management." According to Bennoit it means what?

Interpersonal conflict, that we do not personally attack someone and maintain a nice environment for an exchange of ideas.

2. The authors of the text suggest that you separate what two steps in the prescription stage?

Inventing from deciding

Collaboration Management Style: - Involves - Benefits - Disadvantages

Involves: - Focus on problem and issues - Acknowledge differences - Generate solutions jointly Benefits: + Meets parties needs + Often leads to creative solutions + Builds relationship Disadvantages: - Takes time and effort - If it fails, may give up on future compromise/problem- solving efforts

When dealing with a third party who is reluctant..."stock phrases"

It helps to have stock phrases like "It's not a question of trust" to turn aside ploys like Mrs. Jones's plea for trust. When dealing with a party who is reluctant, try using a one-test mediation procedure-a third party

o Costs of using a bottom line:

It limits your ability to benefit from what you learn during negotiation. Inhibits imagination, keeping you both from inventing and agreeing on a wise solution for both parties. Limited ability to benefit from what you learn during a negotiation Inhibited imagination Likely set too low or high while adopting a bottom line may protect you from accepting a very bad agreement, it may keep you both from inventing and from agreeing to a solution it would be wise to accept. An arbitrarily selected figureis no measure of what you should accept.

Japanese vs. Korean negotiation styles

Japanese are least aggressive, more promises, never use punishment Koreans use more punishments and commands than Japanese, interrupt more

A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?

June 15, 2004

What can be done about these three problems?

Listen actively and acknowledge what is being said, Speak to be understood, speak about yourself, not about them, Speak for a purpose.

Face-saving

Make your proposals consistent with their values. o Maintaining ones self-image o Reconciling an agreement with principle Face-saving involves reconciling an agreement with principle and with the self-image of the negotiators. Its importance should not be underestimated

key provisions of NAFTA

Market Access Nontariff Barriers Rules of Origin Customs administration Investment Services Intellectual Property Government Procurement Standards

Types of assumptions •Negative Prediction •Misinterpretation •Inherited Misinformation •Fragmentary Facts

Negative Prediction •A belief about a person (especially the other party) or an outcome based on anything but reality as it is revealed in the NOW communication exchange. •Belief that people are able to read each other's minds, especially their negative thoughts. •Belief that he/she can foretell the future, especially negative outcomes. •Why wait to see what would happen in reality? Examples of Negative Prediction •"Nothing is going to change." •"Why should I believe he will honor his agreement?" •"I have tried to talk to him on several occasions and he just won't listen." Misinterpretation •misunderstood due to the lack of immediate research of the receiver. •words hold many meanings •Mistaken belief that people can accurately read minds without confirming up truth •Reasons common words and phrasing may be misunderstood: •Colloquialisms •Regional Accents •Experience •Emotional Issues •Incomplete on Nonexistent Research of the Word or Phrase Examples of Misinterpretation •"When you said----, I thought you to mean...." •"What would you think if you were me?" •"I saw that look you gave me." Inherited Misinformation •When misinterpretation (unresearched information) is taken as fact and is passed on to others who have not bothered to research. Fragmentary Facts •When a party thinks or acts on partial information. They in essence jump the gun. Impatience is usually at the root of this category.

Avoidance -{ _____________ } - Domination. What is another word you could use synonymously for your answer?

Negotiation

The story of Wallace and Liz and the cheap statue is designed to illustrate what principle in the chapter?

Negotiation is different with every single person.

Emma Johnson's efficiency apartment is unlivable since the furnace quit working three weeks ago. Emma has called her landlord repeatedly, with no response. She also tried e-mailing him and even went so far as to send a written letter by certified mail, return receipt. She has yet to hear from him or to see any signs of attempted repairs. After enduring chilly nights for 3 days where the temperatures dipped near freezing and catching a bad cold that turned into bronchitis, she packed a suitcase and moved in with a friend until the situation is remedied. She only returns to her apartment each day to check mail and messages and see if any repairs have been made. Rent is due in 4 days; must Emma pay her rent while such conditions exist?

No; since she brought the problem to the landlord's attention but received no response, she can claim constructive eviction.

A buyer assumes the mortgage. How is the owner relieved of the liability?

Novation

Four values held by Americans that cause issues in International Negotiation

Objectivity Competitiveness Equality Punctuality

Chuka chuka negotiation

Only 1 issue and it was a compatible interest.

Which of the following types of real estate licensees is required to display their license prominently at their place of business?

Only licensees who are residential rental locators are required to display their licenses

The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mortgage, which had a current balance of $23,000. The Smiths' financed the remaining $37,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a:

Past Purchase Mortgage

Examples of Infrastructure

Paved roads, railroads, seaports, communication networks, financial networks, energy supplies

Tammy Doherty, a licensee found to be in violation of the Act, has been ordered to pay an administrative penalty of $1,000. Tammy has 30 days to:

Pay the penalty, stay the penalty, or contest the decision

Negotiators are what first?

People

What is the theory of cognitive dissonance?

People look to eliminate inconsistency

Three big problems in communication

People not talking, People not listening, people not understanding each other 1) Negotiators may not be talking to each other, or at least not in such a way as to be understood. (Many talk to the peanut gallery) 2) People don't pay enough attention to what the other side is saying. (Instead they focus on their next point they're planning on making) 3) Misunderstanding.

Principled negotiation (negotiation on the merits)...boiled down to four basic points:

People: Separate the people from the problem. Interests: Focus on interests, not positions. Options: Generate a variety of possibilities before deciding what to do. Criteria: Insist that the result be based on some objective standard.

Economic Growth Factors

Political stability in policies affecting development Economic and legal reforms Entrepreneurship Planning Outward Orientation Factors of Production Industries targeted for growth Incentives to force high domestic rate of savings and direct capital to update infrastructure, transportation, housing, education, and training Privatization of state-owned enterprises that had placed a drain on national budgers

What is a third Way to negotiate?

Principled negotiation

Jess and Celia Bickford are a young, newly-married couple trying to buy their first home in McKinney. The home they would like to buy is selling for $143, 500 and they have $8,500 saved for a down payment. Taking closing costs and down payment into consideration, an online calculator estimates that their monthly mortgage payments on a 6.1% loan would be around $846.43 - an amount that would be manageable for the couple on their $84,000 (annual) income. However, an affordability calculator rated their housing expense-to-income ratio as 28% and their debt-to-income ratio as 36% Would the Bickfords be likely to qualify for a conventional mortgage?

Probably not; they are on the borderline of the maximum housing expense-to-income ratio and debt-to-income ratio limits necessary to qualify for a conventional loan. An FHA loan would give them a little more flexibility in these ratios and in down payment requirements.

TOOL #6 Search for Post-Settlement Settlements

Search for Post Settlement Settlements At the end ask: "Is there any way you see that you can be better off without me being worse off?" Or more simply: "Is there a better agreement for both sides?

What always lies behind opposed positions?

Shared and compatible interests

In a repayment of a mortgage loan, which type of interest is used?

Simple

TOOL #5 Structure Provisional and Contingent Contracts

Structure Provisional Contracts •"All or Nothing" thinking demands that all contracts be permanent, comprehensive, and final. •Break this mental roadblock by creating agreements that are "provisional", "partial", or "experimental." •Sounds like: "Let's try this for one month/one quarter/one year just to see if it works...." Structure Contingent Contracts Trading "Forecasts" is really building a contingent contract. Structure Contingent Contracts 1997 Contract •$4.5M guaranteed, $10.5M possible •$1M for making all playoff games •$500,000 for winning rebound title •$185,000 for each game played after 59th game in the season •$100,000 for positive assist-to-turnover ratio Structure Contingent Contracts Contingent Contracts Allow You To: 1.Move forward in spite of speculative disagreements about the future. 2.Makes "Can we trust Dennis?" a non-issue. 3.Share risk among all parties involved (and risk sharing motivates risk taking). 4.Motivates performance by "building success into the agreement."

One breakthrough strategy Benefits of trying in their shoes

Suggest to them that they might feel the same way if they were in your shoes. "Do you have children? How would you feel if trucks were hurtling at forty miles per hour down the street where you live?" • It can help you to understand the other party's position • It can help you see the similarities between the two positions • Can improve the outcomes if the two points of view are compatible • It may reduce distortions in communication.

An estate that is owned by three siblings with no rights of survivorship is an example of which of the following?

Tenancy in Common

Marcy Weyor, Nacogdoches homeowner, has just received a promotion that requires her to relocate to Atlanta, Georgia within two months. She would like to have the proceeds from the sale of her house to finance her move. At the suggestion of her real estate salesperson, the house is listed as having an "assumable mortgage." What does this mean?

That the buyers can assume Marcy's mortgage on its current terms, as long as the lender approves

The lender is required, under RESPA, to provide a detailed "Good Faith Estimate" statement at the time of loan application or within there business days to:

The Buyer

An impound or reserve account MOST benefits whom?

The Lender

The Morgans paid last year's property taxes of $2,015 in arrears on January 31, the last day to pay without penalty. Now, they are selling their property to Rowena Fyler with the closing date set for May 13. To the nearest cent, calculate who owes whom -- and what amount -- using the calendar year method of prorating and charging the day of closing to Rowena. Assume that it's not a leap year.

The Morgans owe Rowena $728.64.

When met with power

The Most any Negotiation Method can do: •Protect you against making an agreement you should reject; •Help you make the most of the assets you do have so that any agreement you reach will satisfy your interests as well as possible.

The seller under a land contract is called:

The Vendor

One of the most important skills a negotiator can possess is:

The ability to see the situation as the other side sees it, as difficult as it may be.

Principled Negotiation: People:

The ongoing relationship is far more important that the outcome of any negotiation - If there are psychological problems, use psychological tactics. - If perceptions are inaccurate, look for ways to educate. - If emotions run high, then find ways to let all involved let off some steam. - If misunderstanding exists, work to improve communication.

Which of the following would usually occur in a sale-and-leaseback transaction?

The property is sold on the condition that the new owner lease it back to the seller at the time title passes

TOOL #3 Unbundle, Add Issues, and Repackage

Unbundle, Add Issues, and Repackage BUYING A NEW CAR EXAMPLE •Buying a car •Financing - Air Bag Levels •Extras - Color •Warranty - Delivery Date •Audio - Price •Career negotiations usually resolve around a single issue: SALARY. Unbundle the issues! •What other issues could be added to a salary negotiation that create value for both parties? Unbundle, Add Issues, and Repackage Another Helpful Tip: Make multiple offers simultaneously whenever possible. THINK: "Here are 3 'yes-able' propositions..."

At what point should the landlord apprise the tenants of the rules and regulations of the lease?

Upon entering the leasing agreement -- or when the rules are adopted (if lease has already begun)

When WE'RE the problem Prevention: know yourself

What would happen if we hit your "hot" button?? •Know your "hot" buttons!! •We all have them! •Self-Awareness is key—so that you can mentally prepare to control or excuse yourself! •Reduce Your Own Noise Factors •Control our own communication •Verbal •Non-Verbal Language

What is a Yesable Proposition?

Writing something down so that they other side would say the simple word "yes"

What is on the x and y axis for the conflict management styles graph

X= Focus on Other's Concerns Y= Focus on Own Concerns

1957

Year Treaty of Rome was established

Marissa Pauls, licensed Texas real estate salesperson in Fort Worth, is browsing real estate websites when she views an ad placed by licensed real estate salesperson Brock Jordan that promises bonus cash payments for client referrals. Brock's office is in Dallas, and Marissa has just met a young couple wishing to relocate to Dallas. Under the law, can Marissa receive cash payments for any referrals she makes to Brock?

Yes, because it is a business referral between two real estate licensees.

An owner was selling his own home. Can he advertise the down payment?

Yes, because it was his own home.

The Rose family owns a home in a semi-rural area, which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway ending 1 mile before their home. If the airport is constructed, will this diminish the value of the Rose Home?

Yes, because of economic obsolescence.

Robert Weaver's sponsoring broker has asked him to provide an appraisal for one of Odessa Realty's clients. Is Robert authorized to provide an appraisal under the Real Estate License Act?

Yes, but only if he submits the appraisal in his sponsoring broker's name and adheres to the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation -- or, in the case of providing an analysis of market value, includes the mandated written disclosure.

Rob Harrelson and his girlfriend, Ginny Boyer, signed a listing agreement with Eliott Banks of Lubbock Realty a month ago. Since then, Eliott has moved to Lone Star Realty in a neighboring town. Rob and Ginny would prefer to keep their home listed with Lubbock Realty since it's a local agency with a stellar reputation, but Eliott is telling Rob and Ginny that they are now clients of Lone Star Realty and he has an offer to present to them. Is Eliott following the law in attempting to negotiate the sale of Rob and Ginny's house since moving to a new brokerage?

Yes, if Elliot has an agreement with his former agency, Lubbock Realty, that his client's migrate with him to his new brokerage then Rob and Ginny's listing may now be held by Lone Star Realty.

A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?

Yes. This is acceptable as long as the seller agrees.

To invent creative options you will need to

You will need (1) to separate the act of inventing options from the act of judging them; (2) to broaden the options on the table rather than look for a single answer; (3) to search for mutual gains; and (4) to invent ways of making their decisions easy.

Positional Bargaining (stay away from this beastly method of negotiating):

Your ego becomes identified with your position. You now have interest in "saving face". - As more attention is paid to positions, less attention is devoted to meeting the underlying concerns of the parties. - Dragging feet, stonewalling, threatening to walk out, and other such tactics become commonplace and all increase the time and costs and the rish of no agreement at all - Bitter feelings generated by one such encounter may last a lifetime - Choosing a soft and friendly position makes you vulnerable to someone who plays a hard position - hard always dominates soft

Why is being nice not the answer?

Your giving into the argument rather than finding an answer

When making a request

Your request should... •Be a question (not a command) •Use the word "because" (NOTE: If senseless reasons get these results, think how much better a good reason will work.)

Negotiation is

a process of communicating back and forth for the purpose of reaching a joint decision.

Between the date of offer acceptance and the date of closing of the sale, what type of sales contract is in force?

an executory contract

Restrictive covenants that run with the land:

apply to and bind all successive owners of the property.

A mortgage broker:

arranges loans between borrowers and investors

Attack will consist of three maneuvers

asserting their position forcefully, attacking your ideas, and attacking you.

Under RESPA, a copy of "Real Estate Settlement Costs and You" must be given:

at the time of loan application, or within 3 days of application

location

can determine legal jurisdiction if a dispute arises during negotiation

The appraisal market approach most likely to be used in valuing a public library building would be:

cost

Multinational market regions

groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers

What is the function of "letting off steam":

is to deal with people's negative emotions by releasing those feelings...makes it easier to talk rationally later Often, one effective way to deal with people's anger, frustration, and other negative emotions is to help them release those feelings. People obtain psychological release through the simple process of recounting their grievances. If you come home wanting to tell your husband about everything that went wrong at the office, you will become even more frustrated if he says, "Don't bother telling me; I'm sure you had a hard day. Let's skip it." The same is true for negotiators. Letting off steam may make it easier to talk rationally later. Moreover, if a negotiator makes an angry speech and thereby shows his constituency that he is not being "soft," they may give him a freer hand in the negotiation. He can then rely on a reputation for toughness to protect him from criticism later if he eventually enters into an agreement. Hence, instead of interrupting polemical speeches or walking out on the other party, you may decide to control yourself, sit there, and allow them to pour out their grievances at you. When constituents are listening, such occasions may release their frustration as well as the negotiators. Perhaps the best strategy to adopt while the other side lets off steam is to listen quietly without responding to their attacks, and occasionally to ask the speaker to continue until he has spoken his last word. In this way, you offer little support to the inflammatory substance, give the speaker every encouragement to speak himself out, and leave little or no residue to fester.

Physical deterioration is considered curable whenever:

it costs less to correct than the resulting value increase.

what is the "getting past yes" article about?

it is about how negotiations need to consider the practicality of executing the terms after the deal is done. too many people get caught up in getting more out of the zero sum game but don't consider what happens during implementation

Before making a significant statement

know what you want to communicate or find out, and know what purpose this information will serve.

European Court of Justice (ECJ)

organization that serves as the EU supreme court

state soverignity

states are in exclusive control of the people and property within its borders don't want to lose control to be in a union

Greatest danger to not realizing your BATNA

that you are too committed to reaching agreement. a major danger is that you will be too accommodating to the views of the other side — too quick to go along. The siren song of "Let'sall agree and put an end to this" becomes persuasive. You may end up with a deal you should have rejected. Your powert to affect the outcome is taken away b/c whether you or not you should agree depends on the BATNAs (its like negotiating with your eyes closed)

level of industrialization

the UN's classification of country's stage of economic development is based on this

When an appraiser uses the phrase "effective age," he is referring to:

the age of the property based on its condition.

In valuing a single family residence by the comparison approach, an appraiser would make adjustments to:

the comparable properties.

purpose of a side conversation in negotiation

to straighten out a translation problem

"Separate the people from the problem" means:

the participants should come to see themselves as working side by side, attacking the problem, not each other focus on the issue what you want to change, not who is causing the problem. Other negotiators are also people.

economic level of a country

the single most important environmental element to which a marketer must adjust the marketing task

The economic life of an investment can be descrived as:

the time over which value generated exceeds cost of operation.

The "bottom line" is:

the worst acceptable outcome —If you are buying, a bottom line is the highest price you would pay. If you are selling, a bottom line is the lowest amount you would accept.

MDCs, LDCs, LLDCs

three categories of the UN classification of a country's stage of economic development

BATNA-

your Best Alternative To a Negotiated Agreement? That is the standard against which any proposed agreement should be measured. That isthe only standard which can protect you both from accepting terms that are too unfavorable and from rejecting terms it would be in your interest to accept. (what you walk away to)

How do we identify their interests?

• First we have to ask! •Ask them "why?" or "why not?" •Ask yourself "why?" or "why not?" •Helps to discover their BATNA

Soft or hard negotiation

• Neither. •Change the Game. • Principled Negotiation or Negotiation on the Merits •"The Negotiator's New Clothes"

A window into their thinking. Identifying classic "people problems"

• Noise factors are barriers to communication! • Don't get stuck in a noisy communication environment!

What should Differentiation Look Like (If done properly)- at the end of the period

• Parties are aware of differences • Issues are clarified and defined • Both parties recognize the need to work together • Both regard the other's positions as legitimate (though they may not agree with it)

What should Integration look like (If done properly)- at the end of the period

• Parties develop willingness to work with each other • Parties work toward solution that meets interests of both • Parties stick to their guns and do not waffle or give in • Parties consider multiple solutions

The problem: we argue over positions

• Position: •A Stance. •A statement that doesn't define a concern or an interest. •Doesn't explain the "why", no rationale given, no reasoning is provided. •"Positional Bargaining" • Produces Unwise Agreements • Is Inefficient • Endangers an ongoing relationship •Multi-Party Negotiations • Even Worse

Mirroring

•"Correct me if I'm wrong...." •"Tell me if I am hearing correctly..." •If I understand what you are saying...." •"I want to make sure I am understanding you...when you say---do you mean?"

What does it sound like?

•"How did you arrive at that number?" •"What standard do you think we should use to determine the price?" •"Do you want more than is fair?"

Validate their interests

•Acknowledge their perspective neutrally •Note: Acknowledgement is not Agreement •Example: •It appears you are having trouble with this issue •It sounds as though your need for the eggs will meet a much larger need

Soft bargaining

•Advantages: •emphasizes the importance of building and maintaining a relationship •can be efficient; •agreement can be highly likely •Makes concessions readily in order to agree •But will it be a wise agreement? Possibly not! •Two problems with "soft bargaining" •If primarily concerned with relationship, agreement could end up sloppy without our interests protected •Makes us vulnerable to someone who plays a hard game of positional bargaining

Why negotiators are inefficient

•Assumptions - most negotiators enter negotiation with a fixed-pie perception •Negotiators who realize potential for joint gain (less biased) earn higher negotiation profits; and •The link between assumptions and negotiation outcomes is present within the first five minutes and remains effective throughout negotiation

Unavailability

•Attention Signed Elsewhere •Mental Defect •Mind Altering Substances (Legal/Illegal) •Engrossment in past, future or concurrent ideas unrelated to what is occurring in the NOW communication exchange, including: •Physical Problems: •Emotional Rushes: •Tangential Thought Voyages Examples: The party looks around uninterested The party looks at his watch a lot. The party says, "I don't have my documentation on that matter."

Build trust to lead with relationship

•Build the relationship before you negotiate (when possible). •Be polite. Show respect. •Signal "win-win" •Say "Thanks." Say "I'm sorry." •Listen and acknowledge. (Remember: A negotiation is really a series of small, incremental agreements.)

OUR GOAL: expand the pie then divide it!!

•COOPERATE FIRST! •Make it a two-step process instead of one! •To fully realize the win-win structure of the task, realize that you NEED to cooperate with the other negotiator in order to expand the pie of available resources: •SCAVENGER HUNT FOR •Find Compatible Interests •Discover Trade-Off Potential •THEN COMPETE with the other on how to divide the pie.

External noise

•Characterized by any barrier to the flow of communication that occurs in the environment around the discussion. Examples include: •Loud Machinery •Babies Crying •Other people talking •Other people interrupting •Annoying tapping or rapping •Barking Dogs •Ringing

What win win does NOT mean

•Compromise •Even Split •Feeling Good •Building a Relationship

Overview of the integrative negotiation process

•Create a free flow of information •Attempt to understand the other negotiator's real needs and objectives •Emphasize the commonalties between the parties and minimize the differences •Search for solutions that meet the goals and objectives of both sides

Your toolkit for expanding the pie

•Cultivate an "abundance mentality" •Provide information and ask diagnostic questions •Unbundle, add issues, and repackage •Identify value-creating trade-offs •Build provisional and contingent contracts •Search for post settlement settlements

Avoid the intention invention

•Disentangle their intentions from •Your fears •Outcomes •Our interpretations

Once you have an offer

•Do not immediately accept the offer •"This looks great. I need to go over everything one last time before we make this official. I will get back with you at [a specific time]." •Get a copy of the offer in writing •"Can I have a copy of it?" • or - write down your understanding of the terms •Be enthusiastic and gracious •Remember: It's not over til it's over....

Objective procedures

•Drawing Straws/Flipping Coin •Taking turns •Auction •Third-party expert •Arbitration •Rock, Paper, Scissors

Core distributive strategies

•Hold firm to your goals and bottom line •Push for an agreement very close to the other party's resistance point (unknown) •Convince them to change their resistance point •Persuade them to believe this is the best agreement possible

Negotiating in the current economy

•How do salary negotiations differ in today's economy? •2012 Survey - 38% of CFOs more willing to negotiate salary than 1 year ago •Possible suggestions •Know what you are worth and current salary ranges •Apply to wide range of jobs •Gauge whether negotiating salary is appropriate •Suggest a contingent contract based on performance •Negotiate salary at the next promotion date

Interests Most powerful interests

•Interests are underlying reasons for positions—Interests get to the question of _________________. •The problem lies not in conflicting positions, but in conflicting underlying ______________. •"Silent Motivators behind the hubbub" •Human Basic Needs •Security •Economic Well-Being •A Sense of Belonging •Recognition •Control over one's life •Very Often it's not just about ______________. •Individuals, Groups, Nations, Industries, etc. Agreement Often Occurs Because Interests Differ

Internal noise

•Interruptions to the flow of communication that occurs inside of a person (in their thought, emotional, or physical processes). Examples include: •Unavailability •Power •Fear •Lack of Knowledge

Alumni survey results

•Issues negotiated •Focal project, duties •Laptop, software, cell phone •Vacation time •Job location •Earlier start date •$4000 in relocation reimbursement •Equity in business Insisting on Using Objective Criteria & Job Negotiations Insist on Using an Objective Standard Loading... "Getting to Yes" Overview THE METHOD: Principled Negotiation •Separate People from the Problem •Focus on Interests, Not Positions •Invent Options for Mutual Gain • Generate a variety of possibilities before deciding what to do •Insist on Using Objective Criteria • Insist that the result be based on some objective criteria. (Not because you say so, but because of an expert opinion, custom, law, market value, etc. Use objective standards both as a sword to persuade others and as a shield to help you resist pressure to give in arbitrarily. 1."I am asking for no more or no less than you are paying others for comparable work." 2."I would like to give you a discount, but the price is firm. It's what ABC Co. paid for the same item last week; here is the bill of sale." Loading... How do you know it's objective? 1) Is it independent of each party's will? 2) Does it apply equally to both parties (the test of reciprocal application)? 3) Is it supported by a legitimate theory? Objective Criteria •Market Value •Precedent •Scientific Judgment •Professional Standards •Efficiency •Costs •What a Court Would Decide •Moral Standards •Equal Treatment •Tradition •Reciprocity •Etc. Something independent of each side's will! How Do I Insist on Using Objective Criteria? 1.Frame each issue as a joint search for objective criteria. 2.Reason and be open to reason. 3.Never yield to pressure—refocus their pressure toward finding a solution using an objective criteria •"How did you arrive at that number?" •"What standard do you think we should use to determine the price?" •"Do you want more than is fair?" What Does it Sound Like? Reason and be open to reason. Reason is your friend •Almost everybody wants to appear reasonable. •Humility is the key virtue •Consider that you might be wrong and show you're open to persuasion •"I have not yet reached a final decision and I'm open to persuasion." •"Why don't we study the matter and talk again?" •"Would you agree that ____ is reasonable?" What does it sound like? Loading... Never yield to pressure. "Pressure can take many forms: a bribe, a threat, a manipulative appeal to trust, or a simple refusal to budge. In all these cases, the principled response is the same: invite them to state their reasoning, suggest objective criteria you think apply, and refuse to budge except on this basis. Never yield to pressure, only to principle." (p. 91) Objective Procedures •Drawing Straws/Flipping Coin •Taking turns •Auction •Third-party expert •Arbitration •Rock, Paper, Scissors Objective Standards Activity Negotiating a Job Offer •Preparation •In vivo process - during the process •Post offer •http://www.ehow.co.uk/video_2279846_expect-job-interview-salary-negotiation.html Job Negotiation •http://www.ehow.co.uk/video_4983812_justify-new-job-salary.html Seeking a salary increase Once you have an offer •Do not immediately accept the offer •"This looks great. I need to go over everything one last time before we make this official. I will get back with you at [a specific time]." •Get a copy of the offer in writing •"Can I have a copy of it?" • or - write down your understanding of the terms •Be enthusiastic and gracious •Remember: It's not over til it's over.... Alumni Survey Results •Issues negotiated •Focal project, duties •Laptop, software, cell phone •Vacation time •Job location •Earlier start date •$4000 in relocation reimbursement •Equity in business •Their advice •"Don't be afraid to ask" •"You have to ask! They won't bring up expenses/negotiable issues" •"It shows initiative to negotiate for something" •"Be sure you are ready to explain WHY you feel you deserve the salary you ask for" •"While it's tempting to make money your top priority, don't miss out on a great opportunity to grow yourself and your company" •"You are worth more than you realize. Businesses love Baylor"

4 common negotiation shortcomings

•Leaving money on the table (lose-lose) •Settling for too little ("the winner's curse") •Walking away from the table •Settling for terms that are worse than the alternative

Integrative/ distributive bargaining in the real world

•Most actual negotiations are a combination of both integrative and distributive negotiation. •Recognize situations that require more of one approach than the other •Be comfortable with both strategies. •We tend to see problems as more distributive/ competitive than they really are

Debunking 6 myths

•Negotiations are "fixed-sum" •You need to be either tough or soft •Good negotiators are born. •Experience is a great teacher. •Good negotiators take risks. •Good negotiators rely on intuition.

Three big problems in communication

•Negotiators may not be talking with one another—or at least not in such a way as to be understood •Negotiators may not be hearing each other •Negotiators misunderstand one another—may misinterpret messages

First offer review: should I open first?

•OPEN FIRST: Anchoring and adjustment research indicates that unless you have very bad information about the other side, you should open first to take advantage of the opportunity to anchor the negotiation in your favor! •TOO FAVORABLE: An opening that is too favorable to the other side (better than their RP, or even their target) is only going to happen when you have very poor information about the other side. •The Winner's Curse

Categories of people problems

•Perception •Emotion •Communication People problems begin with our inability to see as others see

Negotiating a job offer

•Preparation •In vivo process - during the process •Post offer

Why integrative solutions are so desire able

•Reconcile parties' interests and yield high joint benefit •Effectively expand or create a bargaining zone •More stable than distributive, compromise agreements. •Compromises are often unsatisfactory to one or both parties, causing the issue to come up a later time. •Strengthen relationships - mutually rewarding. •Contribute to the welfare of the broader community of which the two parties are members.

Hard bargaining

•Sees any situation as a conflict of wills •Wants to win •Produces Hard Responses •Harms Relationships •Can leave both parties exhausted and worn out

"Getting to yes" overview THE METHOD: principled negotiation

•Separate People from the Problem • (next week's focus) •Focus on Interests, Not Positions •Invent Options for Mutual Gain •Insist on Using Objective Criteria

"Getting to yes" overview THE METHOD: principled negotiation

•Separate People from the Problem •Focus on Interests, Not Positions •Invent Options for Mutual Gain • Generate a variety of possibilities before deciding what to do *•Insist on Using Objective Criteria* • Insist that the result be based on some objective criteria. (Not because you say so, but because of an expert opinion, custom, law, market value, etc. Use objective standards both as a sword to persuade others and as a shield to help you resist pressure to give in arbitrarily. 1."I am asking for no more or no less than you are paying others for comparable work." 2."I would like to give you a discount, but the price is firm. It's what ABC Co. paid for the same item last week; here is the bill of sale."

"Getting to Yes" Overview THE METHOD: Principled Negotiation

•Separate People from the Problem •Focus on Interests, Not Positions •Invent Options for Mutual Gain • Generate a variety of possibilities before deciding what to do •Insist on Using Objective Criteria • Insist that the result be based on some objective criteria. (Not because you say so, but because of an expert opinion, custom, law, market value, etc.

"Getting to yes" overview THE METHOD: principled negotiation

•Separate People from the Problem •Focus on Interests, Not Positions •Invent Options for Mutual Gain • Generate a variety of possibilities before deciding what to do •Insist on Using Objective Criteria • Insist that the result be based on some objective criteria. (Not because you say so, but because of an expert opinion, custom, law, market value, etc.

How to limit your options

•Students loans and consumer credit debt •Strong location preferences •Risk-averse mentality •"Get a job" rather than "create a job" •Working only where they speak English

Two levels of negotiation

•Substance •Procedure for Dealing with the Substance Every Move Effects the Rules of the Game •Your move may keep the game moving at the status quo; or •It may change the rules of the game. • You are negotiating procedural rules with every move you make

Revealing interests pays off

•Those who reveal their interests improve their outcomes by at least 10% •Statements & questions that can expand the pie •"A 15% gain on Issue A is more valuable to me than a 15% gain on Issue B." •"What would give you more value: increasing X or Y?" •Revealing your interests DOUBLES the probability that the other side will reveal theirs

Revealing your BATNA

•Two cases when it's okay to reveal your BATNA: 1.The 11th hour and negotiations are at a standstill •Reveal at the last minute on the chance the other party might meet it or beat it 2.Your BATNA is phenomenal and you'd be happy to have the other party meet it or trivially improve upon it

Getting to yes (pg 22)

•We must separate the people from the problem. •"Their thinking is the problem"

Intro to integrative negotiation

•Win-Win negotiation •All creative opportunities are exploited and no resources are left on the table. •Pertains to how the pie is enlarged (not divided)

Goals of principled/ integrative negotiations

•Wise Agreements •Efficient Agreements •Maintain Ongoing Relationship

Your interests are your own responsibility

•You are responsible for communicating your needs or wants •Make sure they heard you correctly •Be specific—details make needs credible and add impact

Producing wise agreements

● Does it meet the legitimate interests of each side to the extent possible, resolve interests fairly? Is it durable and does it take community interests into account? ● Is this an efficient agreement? (Did it waste resources?) ● Is this an amicable agreement? (Did it destroy any relationships?)

What if you use threats or make false verbal commitments?

●"That's the best I can do" or "that's the lowest I can go" when you are not at an impasse? ●If you continue negotiating after making threats or statements such as these: ● you will lose credibility ● threats will have no informational value in the future.

If/then threats

●An if/then statement about what a party will do if the other party will not do ●(e.g., If you will not offer a price of x, I will walk away from this negotiation.) ●Did anyone use threats? ●Were threats more likely in negotiations where the seller had a high RP, when impasses occurred? (Should be.) ●Is it wrong to make threats in negotiation? ●Not at the point of impasses. In general, threats should be used strategically to further a party's negotiation goals. If the other offer on the table after significant negotiation is no better than a party's RP, then a threat provides relevant information to the other negotiator. ●Is there any alternative but to threaten the other party when at the point of impasse?

the payback phenomenon

●Exists when win-lose negotiators settle with very lop-sided deals (i.e., split the pie 95%-5%). ●The possibility of "payback" should motivate you to split the pie more evenly.

Can you claim more from the other party if you are tough and offensive?

●Research suggests "no." The risk is that they will walk away rather than have to deal with you. Also, people are more accommodating to others whom they like than whom they dislike.

Targets

●What does having a Target do for you? ●It keeps you motivated to continue negotiating and trying to improve your outcome, even after you have an offer that is better than your Reservation Price. ●(a.k.a. aspiration)

Bargaining Zone (z.o.p.a.)

●What is the Bargaining Zone? ●A.K.A.: Zone of Possible Agreement, (ZOPA) ●Area of overlap between parties' Reservation Prices ●What is the effect of a narrow versus a wide Bargaining Zone? ●In a Narrow Bargaining Zone ●Likelihood of Impasse Increases ●Use of Contentious Tactics Increase