Let’s say that a seller has a house she wants to sell for $150,000. She asks...

Let’s say that a seller has a house she wants to sell for $150,000. She asks the real estate agent to list it for sale at $160,000, but tells the agent not to entertain any bid below $140,000. An interested buyer, who can afford a mortgage at current rates if the total price is below $145,000 (his limit), looks at the house and likes it enough to put in an offer of $138,000. This situation could be characterized as:

Group of answer choices

e) An opportunity for the agent to renegotiate her fee with the seller.

c) A bad BATNA for the buyer

a) A positive ZOPA

b) A negative ZOPA

d) A bad BATNA for the seller

Solutions

Expert Solution

Answer – A bad BATNA for the seller

BATNA refers to Best Alternative To Negotiated Alternative. Seller has specifically asked to not entertain any bid below $1,40,000. So, buyers bid of $1,38,000 is bad alternative for the seller as the seller wants to sell it for at least $1,50,000.

keosha answered 1 year ago

Next > < Previous

Related Solutions

Let’s say that we have a 20-year mortgage with an original loan balance of $150,000 at...

Let’s say that we have a 20-year mortgage with an original loan balance of $150,000 at 7% interest per year. How much money (i.e., balance) do you still owe after the 7th year of the loan? (The loan is compounded monthly) . 1. $129,385 2. Cannot be determined 3. $118,902 4. $133,722

Consider a seller who wants to sell a single unit of a good and a group...

Consider a seller who wants to sell a single unit of a good and a group of firms interested in buying the good. The seller decides to run a sealed-bid, second-price auction. Your firm intends to bid in the auction and had a private value of c for the good being sold, but is unsure of the number of other firms bidding. There will be either two or three additional firms bidding in the auction, each with an independent private...

Let’s say that you purchased a house in January 2005 for $375,000 when Case-Shiller stood at...

Let’s say that you purchased a house in January 2005 for $375,000 when Case-Shiller stood at 135.46, and noted that the Index had climbed to 165.33 one year later. Assuming that the trend continued at the same rate, compounded yearly, what would you have been able to re-sell the property for in January 2012?

Question 8: Let’s say an interviewer wants to select 2 people at random of 3. The...

Question 8: Let’s say an interviewer wants to select 2 people at random of 3. The three individuals are Sally, Joe, John. a.) List the sample space of this experiment (that is make all possible outcomes that can happen in this situation). b.) Given each event in the sample space is equally likely, find each probability . c.) What is the probability of selecting Joe in this interview? Question 9: Please answer the following questions and determine if this represents...

2. Feaheny offered to sell Quinn her house. She made an offer to sell on an...

2. Feaheny offered to sell Quinn her house. She made an offer to sell on an installment payment basis but also asked Quinn to make a cash offer. Quinn made a cash offer which Feaheny rejected. Quinn then accepted the installment payment basis. Feaheny refused to perform the con- tract, and Quinn sued her. Was she liable for breach of contract? 3. The Great A. & P. Tea Co. rented a store from Geary. On February 25 the company wrote...

Acquiror A wants to purchase 80% of Target B’s voting shares. Let’s say that Target B...

Acquiror A wants to purchase 80% of Target B’s voting shares. Let’s say that Target B has 100 voting shares; current market price is equal to $10/share; number of shareholders is 100. In order to attract Target B’s shareholders, Acquiror A offers Target B’s shareholders $15/share. - How much will it cost Acquiror A to purchase the # of Target B’s shares that it wishes to purchase? _______________________________________________________ (please show your calculation in answer) BUT, Poison Pill: Target B has...

A seller agrees to sell his house for $459,000. His listing agreement indicates he will pay...

A seller agrees to sell his house for $459,000. His listing agreement indicates he will pay a 5% commission to his broker. He also expects to pay 3% of the purchase price towards closing costs. What is the net proceed the seller can expect at closing? Show your math

Suppose that Mairin has knit a collection of wool‑blend infinity scarves that she wants to sell...

Suppose that Mairin has knit a collection of wool‑blend infinity scarves that she wants to sell in her Etsy shop for $28.00 each. However, she is worried that if the average price of comparable scarves is less than $28.00, hers would be less likely to sell. Mairin selected a random sample of 9 similar hand‑knit, wool‑blend infinity scarves, and their prices are as follows. $21.75,$24.00,$27.25,$29.95,$23.00,$26.00,$27.80,$33.50,$27.00$21.75,$24.00,$27.25,$29.95,$23.00,$26.00,$27.80,$33.50,$27.00 Use a left‑tailed one‑sample ?t‑test to determine whether the average price of hand‑knit, wool‑blend infinity...

Matlab code Here is the command that asks the user if he/she wants to play again:...

Matlab code Here is the command that asks the user if he/she wants to play again: playAgain = input(Would you like to play again? (y/n): ', 's'); Your task is to write a validation loop that only strings that start with a letter "y" or a letter "n", irrespective of cases, are considered to be valid input.

Sarah has a mortgage on her house with a balance of $150,000 andthe APR on...

Sarah has a mortgage on her house with a balance of $150,000 and the APR on the loan is 6%. She is currently paying $1,500 a month on the loan, at this rate how many years will it take to repay the loan?

Subjects