Negotiation Techniques Flashcards

In principled negotiation, what does BATNA stand for?

Answer: Best Alternative to a Negotiated Agreement

BATNA, coined by Fisher and Ury, is the best course of action a party can take if negotiations fail.

A seller's strongest BATNA during a negotiation is typically which of the following?

Answer: A backup offer or other strong buyer interest

Real competing buyer interest gives the seller a credible alternative and increases leverage.

The range between the seller's lowest acceptable price and the buyer's highest acceptable price is called the:

Answer: Zone of Possible Agreement (ZOPA)

ZOPA is the overlap where both parties' acceptable terms intersect and a deal is possible.

A buyer's agent says, "My client is firm at $410,000 and won't move." What is the seller's agent's best first response?

Answer: Ask questions to uncover the buyer's motivations and constraints

Probing for underlying interests often reveals non-price terms that can bridge the gap.

Without the seller's permission, a seller representative reveals to the buyer's agent that the seller must close in 30 days because of a job transfer. This most directly violates the duty of:

Answer: Confidentiality

A seller's motivation and urgency are confidential information that weaken bargaining position if disclosed.

Which negotiation technique uses a deliberate pause after hearing an offer to prompt the other side to keep talking or improve their position?

Answer: Strategic silence

Silence creates discomfort that often leads the other party to share information or sweeten terms.

When a buyer requests $12,000 in inspection repairs, the seller's agent suggests a closing cost credit instead of the seller doing the work. A main benefit to the seller is that a credit:

Answer: Avoids managing contractors and the risk of disputes over repair quality

Credits let the seller skip coordinating repairs and avoid arguments over how the work was done.