The Bullard Houses Negotiations

Negotiation Preparation Document

1. What is your walk away point? How did you come up with that?

My walk away is when one of these conditions are not met:

• The houses are destroyed
• The houses will not be meant for commercial usage unless they are as profitable as the Grouse proposal
• Any usage of the houses creating bad press for Mallory or Myles is intolerable

After the above conditions are met, my walk away point is 7.5m as that is the best possible alternative my client would have immediately.

1. What is your target?  How did you come up with that?

My target includes fulfilling the above conditions and seeking a value 9m up front and net present value of 21m. As I have several options on the table and an up and coming district along the houses, I feel the target I came up with is reasonable and feasible.  

1. What are your sources of power and key weaknesses in this negotiation?

Positional Strengths:

1. 3 other alternatives that were vouched by Mallory’s real estate firm
2. Mallory Bullard is the founder of a well-respected real estate firm, as such she knows when she sees a poor offer.
3. The buyer is unaware of the conditions placed on the house
4. The historical district is now a chic area filled with houses, restaurants and trendy boutiques.

Personal Strength:

1. I am a calm and confident speaker who does not let emotions get the better of me
2. I am direct and straight forward and I will call out someone if he/she is trying to pull a fast one on me.

Positional Weakness:

1. The conditions have to be met
2. Jones & Jones is considered one of Gotham’s top real estate firms, hence higher chances of having a competitive reservation price (BATNA)
3. Buyer is aware that the house is generating a loss due to the Anti-Condo legislation and higher taxes
4. The other 3 offers expire at midnight tonight (time limit)

1. What is your strategy for getting a wise agreement?

In achieving a wise agreement, I would have to fulfil the conditions instructed by the shareholders and followed by maximising the sales price. I will ask direct questions about their interests and restrictions in order to estimate their reservation price and also the ZOPA in this negotiation. In order to maximise value, I would utilise the 3 alternative offers as leverage for more concessions made by Jones & Jones. I would not state that conditions have been imposed as that could possibly be used as leverage in order to compromise on the selling price. However, if negotiations are not making any progress, I would disclose selected conditions to build trust and create possible avenues for further discussion. Communicating our interests would provide higher chances of success and coming to an agreement.