Hi, please read the attachment and answer the questions below. I am the buyer in this negotiation. What strategies will you be using in the negotiation? Do you want to make the opening offer? Why or why not?What strategies do you expect to see from your counterparty? How will you prepare to meet those strategies?Given your scenario, what other information is important for you to keep in mind while negotiating? You have recently accepted a job in a major metropolitan area, and you want to buy ahouse near your new job. You have selected the suburb of Sunnyvale as the best area foryou and your spouse. Ideally, you would like to find a house in the $235,000 to $255,000range. You have hired a local agent in Sunnyvale to help you identify likely prospects.Your agent has shown you and your spouse 12 properties over the past 2 months. Youhave also driven by several dozen additional properties with your agent. You subscribe tothe local newspaper's Sunday section to keep apprised of ads for homes for sale. Many ofthe homes you saw with your agent had major structural wear and would be classified as"fixer-uppers." You realize that no home will be exactly what you want, and you willinevitably have to do some remodeling. However, you and your spouse have very busywork schedules and you know you will not have time to manage any major renovations,so you want to buy a house that is not going to require a lot of work from the start. Onyour last visit, you and your agent found one house that seemed like a reasonableprospect-1490 Maple Drive. You did not look at this house before because you insistedthat your agent show you only properties listed below $250,000. You just raised thisthreshold, with the idea that you might negotiate a lower price. The property was by farthe most suitable you have seen. The house appears to be in good condition, and it hasthe Victorian flavor that your spouse adores. Although the house is not as large as youhad hoped, it has a great yard that will be perfect for when you have children. The houseis near a good local elementary school, and a playground and tennis courts are withinwalking distance. There is a corner market within walking distance. A large shopping malland supermarket are within a 10-minute drive. The problem is the price--the house islisted at $270,000. The alternative property you have in mind lists for $242,000. That propertyhas the extra square footage you want plus an extra half bath. It has a smaller yard than theMaple Drive property and an unfinished basement, but the location is not as good and thehouse needs quite a bit of work. You think you could probably get this alternative for$235,000. You have decided that you would like to buy the house at 1490 Maple Drive, butyou remain concerned about the price. According to your own careful calculations, yourhousehold income will allow you to obtain a loan for $230,000. You and your spouse have$30,000 in cash. However, you must factor "closing costs" into your overall budget (loan fees,costs of appraisals or inspections, etc.). These expenses routinely amount to about 3% of thesales price. If you can get another party to "share" the closing costs, you could afford to paymore for the house. Overall, your maximum outlay for the house including closing costs is$260,000. Therefore, unless you negotiate a price of $260,000 or less, you will settle on thealternative property listed at $242,000. You will use the money you will save to make therepairs needed on the alternative house and get a good start on refinishing the basement. Youwant your agent to bid on the house at 1490 Maple Drive. You plan to email your agent shortlyto begin strategizing about this bid. Although you like your agent, to date you have not sharedinformation regarding your financial situation and capabilities, you've simply stated that youdesire a "cap" of $250,000. You must decide how much information to share with your agentwith regard to your reservation price and your desire to reach a deal. Since time is gettingshort and the listing price is high, you have decided that you will not spend more than 2 weeknegotiating for the Maple Drive house. If you are not able to make a deal for the Maple Drivehouse in 2 weeks, you will begin negotiating the alternative property.

Question

Hi, please read the attachment and answer the questions below. I am the buyer in this negotiation. What strategies will you be using in the negotiation? Do you want to make the opening offer?  Why or why not?What strategies do you expect to see from your counterparty? How will you prepare to meet those strategies?Given your scenario, what other information is important for you to keep in mind while negotiating? You have recently accepted a job in a major metropolitan area, and you want to buy ahouse near your new job. You have selected the suburb of Sunnyvale as the best area foryou and your spouse. Ideally, you would like to find a house in the $235,000 to $255,000range. You have hired a local agent in Sunnyvale to help you identify likely prospects.Your agent has shown you and your spouse 12 properties over the past 2 months. Youhave also driven by several dozen additional properties with your agent. You subscribe tothe local newspaper's Sunday section to keep apprised of ads for homes for sale. Many ofthe homes you saw with your agent had major structural wear and would be classified as&#34;fixer-uppers.&#34; You realize that no home will be exactly what you want, and you willinevitably have to do some remodeling. However, you and your spouse have very busywork schedules and you know you will not have time to manage any major renovations,so you want to buy a house that is not going to require a lot of work from the start. Onyour last visit, you and your agent found one house that seemed like a reasonableprospect-1490 Maple Drive. You did not look at this house before because you insistedthat your agent show you only properties listed below $250,000. You just raised thisthreshold, with the idea that you might negotiate a lower price. The property was by farthe most suitable you have seen. The house appears to be in good condition, and it hasthe Victorian flavor that your spouse adores. Although the house is not as large as youhad hoped, it has a great yard that will be perfect for when you have children. The houseis near a good local elementary school, and a playground and tennis courts are withinwalking distance. There is a corner market within walking distance. A large shopping malland supermarket are within a 10-minute drive. The problem is the price--the house islisted at $270,000. The alternative property you have in mind lists for $242,000. That propertyhas the extra square footage you want plus an extra half bath. It has a smaller yard than theMaple Drive property and an unfinished basement, but the location is not as good and thehouse needs quite a bit of work. You think you could probably get this alternative for$235,000. You have decided that you would like to buy the house at 1490 Maple Drive, butyou remain concerned about the price. According to your own careful calculations, yourhousehold income will allow you to obtain a loan for $230,000. You and your spouse have$30,000 in cash. However, you must factor &#34;closing costs&#34; into your overall budget (loan fees,costs of appraisals or inspections, etc.). These expenses routinely amount to about 3% of thesales price. If you can get another party to &#34;share&#34; the closing costs, you could afford to paymore for the house. Overall, your maximum outlay for the house including closing costs is$260,000. Therefore, unless you negotiate a price of $260,000 or less, you will settle on thealternative property listed at $242,000. You will use the money you will save to make therepairs needed on the alternative house and get a good start on refinishing the basement. Youwant your agent to bid on the house at 1490 Maple Drive. You plan to email your agent shortlyto begin strategizing about this bid. Although you like your agent, to date you have not sharedinformation regarding your financial situation and capabilities, you've simply stated that youdesire a &#34;cap&#34; of $250,000. You must decide how much information to share with your agentwith regard to your reservation price and your desire to reach a deal. Since time is gettingshort and the listing price is high, you have decided that you will not spend more than 2 weeknegotiating for the Maple Drive house. If you are not able to make a deal for the Maple Drivehouse in 2 weeks, you will begin negotiating the alternative property.

Accepted Answer

1.  Strategies used while negotiation 
As the buyer in this negotiation, I would adopt several…