Downtown Realty

Name: Nikhita Vanwari

Course: Negotiation and Conflict Resolution

PLANNING DOCUMENT FORM

Negotiation: The Bullard Houses                                              Role: Seller’s Representative

Issues most important to me:

As a representative of Downtown Realty, which was owned by seven elderly members of the Bullard family, it was my responsibility to find a deal that kept the owner’s of Downtown’s best interests in mind. There were certain things that were unacceptable to the shareholders.

1. The house must not be destroyed
2. Commercial uses are unacceptable, unless they are at least as tasteful as the Grouse proposal
3. Any use of the house that generates bad press for Mallory Bullard or Myles Bullard is out of question
4. Given the above criteria are met, sales price for the house must be maximized with preference for cash or hard assets over notes and income rights  

My BATNA, Reservation Price, Target:

• BATNA: The next best alternative is to take the Grouse agreement
• Reservation Price: 7.5 million for more than 60% of Downtown’s stocks
• Target: 8 million in cash or hard assets for 55% of Downtown’s stocks with an agreement to not use the house for commercial purposes.

My sources of power:

1. The Bullard house is well located near Gotham’s historic area which is now a chic area filled with remodeled row houses, gourmet restaurants and trendy boutiques.
2. It is a grand house with historic relevance. For years it has been a symbol of power and privilege.

Jones and Jones:

We do not have any information about Jones and Jones BATNA, Reservation Price or target. I don’t know their sources of strength or what issues are important to them. The only information we have about they is that they have retained one of Gotham’s top real estate firms. This leads me to believe that their interests are solid and well financed.

What is your strategy? What is your opening move or first offer?

Since I am entering the negotiation with little information about Jones and Jones, my goal is to gain a better understanding of their position. Without this information it is impossible for me to extend the first offer. I need to gain information about what issues are important to them, what their BATNA, Reservation Price and target is, and what are their sources of power. However, they would be unwilling to share this information with me until trust between us is built. Trust building requires honest, mutual sharing of information. I will take the initiative by stating the issues that are most important to me – not destroying the home or using it for commercial purposes while maintain the image of the shareholders. From there I expect Jones and Jones’ representative to reciprocate with information about them. Once we have this information I will proceed to identify issues on which we agree. Once that is established we can move on to the more difficult aspects of the negotiation. I will ask for 8 million for 55% of Downtown’s stocks. That will be my target price. By focusing on my strengths I will anchor this offer. As the negotiation proceeds I will make compensations based on the importance of difference issues to Jones and Jones.