CNE Study Guide 2026

Lowballing involves making an initial offer that is significantly lower than the actual desired price or value, often with the intention of anchoring the negotiation at that low point. While it can be seen as aggressive, it aims to shift the other party's expectations downwards, making subsequent, slightly higher offers seem more reasonable by comparison. This tactic attempts to gain a substantial advantage from the outset.

Scarcity triggers fear of loss, making people act more quickly and accept less favorable terms to avoid missing out on a limited opportunity.

A kick-out clause allows the seller to continue marketing and accept a better offer, requiring the original buyer to 'perform or perish' within a set timeframe.

Due diligence refers to the buyer's systematic investigation of the property—including inspections, title review, and zoning checks—typically allowed within a contractually specified period before becoming fully committed.

In a seller's market, buyers must be competitive by reducing friction—clean offers with fewer contingencies appeal most to sellers who have multiple options.

Active listening goes beyond simply hearing words; it involves fully concentrating on, understanding, responding to, and remembering what the other person is saying, both verbally and non-verbally. In ethical negotiations, this practice demonstrates respect for the counterpart's perspective and needs, which is fundamental to building trust and rapport. By truly understanding their position, negotiators can identify fair and equitable solutions that consider all parties' interests, aligning with ethical principles.