Negotiation Techniques Flashcards

The "flinch" tactic involves:

Answer: Showing a visible negative reaction to an offer to suggest it is unacceptable

A flinch signals surprise or displeasure, pushing the other side to reconsider its position.

A buyer's agent claims the buyer must check with a relative who is paying part of the down payment before agreeing to anything. This tactic is known as:

Answer: Appealing to a higher authority

Pointing to an absent decision-maker lets a negotiator delay and avoid committing.

To counter the "higher authority" tactic, a seller's agent should ideally:

Answer: Confirm early who has final decision-making authority

Finding out who the decision-makers are up front limits later stalling.

Fisher and Ury's principled negotiation recommends focusing on:

Answer: Interests rather than positions

Addressing the underlying interests helps parties find options that satisfy both sides.

A buyer insists on a $395,000 price; the seller wants $405,000. The buyer needs low upfront cash, and the seller needs a quick close. Which solution best uses interest-based negotiation?

Answer: Agree to $405,000 with a seller credit toward closing costs and a fast closing date

Structuring the price and credit around each party's real needs creates value for both.

Before presenting offers, a seller representative should help the seller set a walk-away point, which is also called the:

Answer: Reservation price

The reservation price is the least favorable point at which the seller will still accept a deal.

After inspection, a buyer sends a repair request with 20 items, many of them minor. A strong seller-side strategy is to:

Answer: Prioritize safety and material defects, then offer a response or credit focused on those items

Addressing significant issues while declining cosmetic items keeps the deal moving and protects the seller's net.