APPLETON VS.

BAKER CASE

Appletons Lawyers approached your customers (Baker Family) to sell their Lot 42. The
Appleton lives on Lot 43, and the Baker lives on Lot 41.
The Appleton have been trying to sell their house (43) and the land adjacent (42), but it is on
the market for a month or so.
The Appleton acquired the Lot 42 in 1978 from the Moore family (Lot 27 and 28 behind
ours) for $7K and wanted to build a tennis court with the Bakers. However, my clients do not
play tennis.
The Lot 42 isnt buildable as it has only 20K sq. feet, which is less than 1 acre (43,560 sq.
feet).
My clients (the Bakers) want the lot to expand the kitchen towards the south and build a
greenhouse. They are willing to pay up to $20K for the lot.
They are not interested in any other property.

BATNA:
The Bakers BATNA is to walk away without buying any lot. They are only interested on buying this
one.

RV:
They are willing to pay up to $20K for the Lot 42.

NEGOTIATION STRATEGY:
1. Understand why the Appleton family is moving from the neighborhood. This would allow me to
see how desperate they are to come to an agreement.
2. As the Lot 42 isnt buildable they have only 2 possible buyers, those who buy their house (Lot
43) and my clients. It is important to remember that the Moore family (Lot 27 and 28) isnt
interested in the Lot.
3. Do they currently have a buyer for their home (Lot 43), if so, why they are approaching my
clients to sell the Lot 42?
4. The negotiation base point should be the $7K as thats a number that both parties know. The
number would probably end up being higher but as they dont have many options I would like
to start the negotiation as low as possible.
Additionally:
1. Understand the ZOPA. Do we overlap?
2. How to capture as much value under the $20K
Our Interests:

1. My clients (the Bakers) want the lot to expand the kitchen towards the south and build a
greenhouse.