Deck 7: Strategies and Tactics in Real Estate Negotiations

Question 1

Fair market value is assessed through ___, such as prices generated through standard pricing methods.

Answer 1

objective criteria

Question 2

The process of reaching an agreement in a hard positional negotiation is often ___, i.e., likely to both physically and mentally taxing on the negotiator.

Answer 2

inefficient

Question 3

Hard positional negotiation produces ___ agreements; that is, agreements that may not truly reflect the interest of the clients.

Answer 3

unwise

Question 4

___ negotiation, referred to by economists as 'distributive negotiation,' is the most common method of negotiation.

Question 5

Which of the following are tactics related to the use of objective criteria?

A) comparative market analysis
B) work together to identify sources of objective criteria
C) provide information about one's interests and priorities
D) principled negotiation
E) discuss and come to an agreement regarding multiple market valuations

Question 6

What are some issues that can be brought up as a result of unbundling the issues?

A) financial resources
B) empathy
C) price
D) timeliness
E) respect

Question 7

What are some tactics designed to implement the invent-options-for-mutual-gains strategy?

A) unbundle the issues
B) make multiple offers of the same value simultaneously
C) make package deals
D) perspective taking
E) ask questions about interests

Question 8

What are some of the benefits of asking a party about their interests?

A) it increases the chance a negotiator will reach their client's target price
B) it makes it more likely a negotiator will be sought out for business in the future
C) it provides vital information for developing creative, integrative solutions
D) it makes the other party more trusting
E) it may undermine the opponent's ability to negotiate by tiring them out with mundane details

Question 9

What are some possible negative outcomes from hard positional negotiation?

A) the negotiation may sour relationships with other negotiators
B) the negotiator may secure an agreement closer to the client's target price
C) too many concessions may undercut the reservation price
D) the agreement may not reflect the true interests of clients
E) the process may be tiring and inefficient

Question 10

In what case should a negotiator avoid providing information about their own client's interests?

A) in distributive negotiations
B) when the other negotiator is a friend
C) in integrative negotiations
D) against soft positional negotiators
E) against principled negotiators

Question 11

Hard positional negotiations are likely to sour the ___ between the two parties.

Question 12

___ negotiation is negotiation with the goal of accommodating the other party in the best way possible.

Question 13

A fair deal in real estate transaction is a deal that has fair ___.

Question 14

The hallmark of integrative negotiation is to bundle the issues in alternative '___' that reflect trade-off decisions, trade-offs among the issues.

Question 15

___ the issues means bringing new issues to the negotiating table with the goal of transforming a single-issue/fixed pie negotiation into an integrative, multi-issue/expanding pie negotiation.

Question 16

Research has uncovered the notion that negotiators who have high ___ motivation, a personal need for structure, are more likely to produce an outcome characterized by mutual gains.

Question 17

One important tactic that principled negotiators use to decrease the likelihood of misperceptions, emotional overreactions, and miscommunications is ___, which refers to taking the point of view of the other party by trying to see the circumstances surrounding the negotiation from the counterparty's eyes.

Question 18

Psychologists call misperceptions in which people infer personal characteristics to explain behavior about another person ___.

Question 19

Principled negotiators try their best to ___, i.e., remove personal feelings and biases so a rational decision can be made.

Question 20

Principled negotiators are primarily concerned with the core ___ underlying positions rather than the positions themselves.

Question 21

___, or integrative, negotiation is negotiation based on the merits.

Question 22

Which of the following is an example of using self-discipline to separate the people from the problem?

A) perspective taking
B) insist on using objective criteria
C) focus on interests, not positions
D) principled negotiation
E) don't reciprocate when personally attacked

Question 23

In what way is perspective taking different from empathy?

A) empathy requires reciprocation
B) perspective taking is a cognitive ability, while empathy is the ability to emotionally connect with others
C) perspective taking is an expansion of empathy
D) empathy is more rational and calculating
E) perspective taking is not different from empathy

Question 24

How does a principled negotiator begin when trying to separate the people from the problem?

A) identify tangible and intangible issues
B) dismiss emotional appeals and confront adversaries with hard facts
C) grow a thick skin
D) collect hard facts
E) ensure the buyer and seller representatives interact without their clients present

Question 25

Parties are more likely to misrepresent their BATNA or reservation price than their general interests.

Question 26

Negotiation experts recommend self-discipline in controlling one's emotions, in order to not react to the another's emotional outbursts, inappropriate action, or personal attacks.

Question 27

People have a tendency to infer situational characteristics to explain behavior of another while inferring personal characteristics when explaining their own behavior.

Question 28

Principled negotiators like to have a bottom line.

Question 29

Unlike hard and soft positional negotiation, principled negotiation focuses on underlying interests.

Question 30

Principled negotiators tend to be very trusting.

Question 31

Soft positional negotiation is commonly practiced in real estate, particularly among agents who are not familiar with the science of business negotiations and in situations involving competitor firms.

Question 32

Soft positional negotiation is ideal in most situations.

Question 33

Soft positional negotiation is common when the buyer and seller agent are members of the same firm.

Question 34

Asking questions concerning the other party's interests prompts the other party to be more open, trusting, make positive attributions about the negotiator's intentions, and seek a relationship that involves future repeat business.

Question 35

The tactic of providing information about the client's interests to the other party is best used in distributive negotiations.

Question 36

How is a principled negotiator different from both a hard and soft positional negotiator?

A) she avoids trusting too much
B) she tends to back up her position with hard facts
C) she focuses on interests rather than positions
D) she tends to be accommodating toward other negotiators
E) she modulates her behavior based on intangible issues

Question 37

What is the primary goal of principled negotiation?

A) to make a decision that feels right
B) to reach a consensus
C) to reach a wise outcome efficiently and amicably
D) to complete the deal
E) to win

Question 38

Which of the following is a characteristic of soft positional negotiations?

A) negotiators avoid contests of wills and yield readily
B) negotiators trust each other
C) negotiators are willing to disclose their reservation prices to one another
D) all of the above
E) none of the above

Question 39

Which of the following best characterizes the relationship between negotiators in a soft positional negotiation?

A) negotiators view themselves as problem solvers
B) negotiators act as a mirror, using whatever strategies best suit the client
C) negotiators act as competitors fighting over limited resources
D) negotiators act as friends and try their best to accommodate each other
E) negotiators have malleable or ,soft, methods that can be adjusted on the fly

Question 40

Which of the following is a characteristic of a hard positional negotiator?

A) they avoid contests of wills
B) they will try to hide their bottom line
C) they insist on agreement
D) they change their position easily
E) they are trusting

Question 41

What is the principal goal of a hard positional negotiator?

A) to make a decision that feels right
B) to reach a consensus
C) to reach a wise outcome efficiently and amicably
D) to complete the deal
E) to win

Question 42

Negotiators who make multiple equivalent offers are more likely to be rated highly on measures of negotiation effectiveness.

Question 43

One of the advantages of package deals is that they may bridge the gap in the zone of possible agreement and, in doing so, move stakeholders from impasse to agreement.

Question 44

Negotiators who focus exclusively on price are generally the most effective.

Question 45

Hard positional negotiation is considered ineffective because arguing over positions produces unwise agreements, is inefficient, and endangers an ongoing and possibly future relationship.