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MM5010StrategicDecisionMakingand

Nego\a\on
IDENTFYING&IMPROVINGOURBATNA

SYNDICATE2
29111311HaidirAfesina(fezi)

29111328HendraWinata
29111329MitaListyatri

29111338AndekPrabowo
29111344AprianEkaRahadi

29111384ChairunnisaMirhelina
29111387FranciscusXaveriusKresnaPaska
29111393AgungIndriPramantyo

SELLER

29111328HendraWinata
29111329MitaListyatri

29111393AgungIndriPramantyo

BUYER

29111311HaidirAfesina(fezi)

29111338AndekPrabowp
29111384ChairunnisaMirhelina
29111387FranciscusXaveriusKresnaPaska

Near Hastings & Centennial parks

Casesynopsis
SELLER
Lis\ng#9013878:$240,000

Directselling(NOAGENT)
Onemonthonthemarket
OneofthenicesthouseintheCentennalParkarea
Originallypurchased$155,000

Descrip\on
Builtin1947
1846squarefeetofspace

InsideAmeni\es
Largeeatinkitchenwithallappliances
Newlydecorated

OutsideAmeni\es
Detachedgarage(2.5cars)
Restaurants&transporta\onwithinwalking
distance
NearHas\ngs&Centennialparks

BUYER
Submieedoer:$220,000

Rentforfewyearsandthenresellataprot
LookingforsinglefamilyhomeinCenterville

Priceofneighboringhomeswithsimilar
characteris\c:

Lis\ng#

SellingPrice SquareFeet

8906898

$213,300

1715

8904725

$233,600

1875

8908614

$239,600

1920

BARGAININGZONE
Buyer sAspira\onPrice
$220,000

Buyer sReserva\onPrice
$235,000

BUYER

ZOPA

Seller s Reservation Price


$225,000

SELLER
Seller s Aspiration Price
$240,000

$225,000$$235,000
BATNABUYER=Willingnesstobuyi.e.theonlybuyerwhocomeina
month
BATNASELLER=Futureprospectoftheareai.e.strategicloca\on

BUYERPERSPECTIVE
#1.Priceofneighboringhomeswithsimilarcharacteris\c:
Lis\ng#

SellingPrice

SquareFeet

Price/Squarefeet

8906898

$213,300

1715

124.4

8904725

$233,600

1875

124.6

8908614

$239,600

1920

124.8

AVERAGE

$228,900

1837

124.6

Remark

SellingPrice/squarefeet

Sellingprice@1846square
feet

Average

124.6

$230,000

Seller#9013878

130.01

$240,000

#1.5ALTERNATIVESIFNOAGREEMENT
BUYER
1.Renttoown/Leaseop\on
2.rentotherhousessurroundit
3.Askinghelpfromanexper\seorcommunitytoiden\fytheseller`sauthority/
decisionmaker
4.Sharedownershipwithfamilyorfriendi.e.5050
5.Alliancewithpowerful&inuencedpeopleororganiza\on

MarketResearch
Bedrooms: 1 Bathrooms:
1 Monthly Rent: $ 500
Date Available: June 8th, 2009
Lease Info: 6 months/12 months
Application Fee (Standard): $ 38
Pets: No Pets
Parking: 1 car carport
Fireplace: No fireplace
Approx Square Feet: 600 Dwelling Type: Single family

http://public.rpl.herorentals.com/RPL/search/USA.index.mvc?page=results

Near Hastings & Centennial parks


Strategic location
Bigger house

Based in Hostede, the American


people are individualism, means the
need of individual treatment for
personal approach in order to
convince to sell to us

#2.BESTALTERNATIVESIFNOAGREEMENT
BUYER

RENTTOOWN/LEASEOPTION

Near Hastings & Centennial parks

#3.2BUYERIMPROVINGBATNA
Arrangementwithsupplier,partnersorcustomer

1.Cer\edhomeinspector
2.Buildrela\onship(personalemo\onal)withsellerandcommunitysurroundthe
areai.e.toiden\fytheseller`sauthority/decisionmaker
3.Oerreleaseclausetotheseller

RemoveanyconstrainsthatweakenBATNA

Oerreleaseclausetotheseller
Bycheckingpoten:allyrelevantbusinessfutureandnego:atedwiththesellerthe
percentageofsharedprot

Changetermsofnego\a\on

Gethomeinspectedandappraised
Regardlessofitsnewameni:esandfurnished,thebuildingisold.Theinspector
wouldcheckifthereisanytermites,anytermitedamage,houseelectricalsystem,
plumbingandalsohealingandcoolingsystem.Thusthepricewilldependonthe
report.

#4.NEWBATNAIFSUCCEEDED
BUYER
Oeredreleaseclauseagreement

Regardlessofagreeingthepricethatsuitstobuyer,itisbelieved
thatthesellerwouldbeinterestedashewouldgettheshared/
commissionforthenextsalesasbuyerwillsellagainthehouse.
However,onlyifthereleaseclausemet.

#4.BUYERNEWBATNAIFSUCCEEDED

BUYER

Reserva\on Aspira\on
Price
Price

NewBATNAValue

$235,000

Avg.HomePrice**
($DecreaseFactorfrom
Nego:a:on)+($
commissionforNext
SalestoExis:ngSeller)
($NetProtfromNext
Sales)

** Buyer: 230,000

$220,000

SELLERPERSPECTIVE
Lis\ng#

SellingPrice

SquareFeet

Price/Squarefeet

8906898

$213,300

1715

124.4

#9013878
SellerHouse

1846

8904725

$233,600

1875

124.6

8908614

$239,600

1920

124.8

#2.Mathema\cal

(18751846)/(18461715)=(124.6X)/(X124.4)

29/131=(124.6X)/(X124.4)

29X3607.6=16322.6131X

160X=19930.2

X =124.56(Averagesellingpersquarefeet)

SELLINGPRICE=1846x124.56=$229,937

SELLERPERSPECTIVE
#1.Mathema\calforHomePriceApprecia\onRate

Assump\on:
CentervillelocatednearDC(virginia)
AverageHomePrice
Apprecia\onRatein
DCfrom2012
BasePriceusing1
YearForwardUsing
Price(Apprecia\on)
240,000

Last10year

Last5year

LastYear

LastQuarter

24%

12%

0.21%

1.04%

193,548*

272,727

239,497

237,530

Source:hep://www.forecastchart.com/homepricesdc.html

BaseYear=240,000/(100%+AverageHomePriceApprecia\onRate%)
AssumeSeller&Buyeragreewithprice$240,000,wherethebasepriceis$239,497usinglastyear
data,Sellergetaround$503

ButifSelleragreewithprice$229,937wherethebasepriceis$239,497usinglastyeardata,Seller
lostprotopportunityaround$9,560

#1.5ALTERNATIVESIFNOAGREEMENT
SELLER
1.Rentedthehousetobuyer
2.Marke\ngstrategyi.e.STP
S:middleclass
T:singlefamily
P:investmentforan\queloversclub
3.Marke\ngtac\ci.e.Adver\sing
ATL:Property&businessmagazine
BTL:Socialmedia&community(WOM)
4.Buyerassistednancingfromselleri.e.50%cashdeposits,5%interest,10years
(nego\able)

5.Runningbusinessopportunityi.e.guesthouse

#2.BESTALTERNATIVESIFNOAGREEMENT
SELLER

Runbusinessopportunity

1. Posi:ve(guesthousenearbyhas:ngandcentennialparks)
2. Nega:ve(conspiringwithhisneighborsaroundtooerhigher
abovenormalrates(1.5:mes)toboostthemarketprice

#3.SELLERIMPROVINGBATNA
Arrangementwithsupplier,partnersorcustomer
1.Homeinsurance
2.Buildrela\onshipwithcommunitysurroundthearea
3.Posi\onedasan\quehistoricalvaluei.e.investment
4.Adver\sement(ATL&BTL)

RemoteanyconstrainsthatweakenBATNA

1.Homeinsurance
2.Assessbusinessopportunitywithbusinessen\tyarounde.g.ShoppingCenter,
Restaurant

Changetermsofnego\a\on

1.Priceexpira\on
2.Askcommissionpercentageifbuyerwanttoresalethehouse

#4.NEWBATNAIFSUCCEEDED
SELLER
Runbusinessopportunity

BasedonSellercalcula.ononslide6,Sellerwilllostprotopportunity
$9,560ifAgreethesalescostof$229,937toBuyerorbelow$239,947.
Thereforeweprefertokeepthehouseandrunbusiness
e.g.runningaguesthousetoimproveSellerBATNAwhilewaitfor
apprecia:onRatefromthehousepricewhichhasincreasedtrendin
DCarea

#4.NEWBATNAIFSUCCEEDED

SELLER

Reserva\on Aspira\on
Price
Price

NewBATNAValue

$225,000

Avg.HomePrice*+
($Rent/year)+($Home
Apprecia:on/year)

Seller: 229,937

$240,000