Essay on Negotiation Exercise

1838 Words Jul 24th, 2014 8 Pages
NEGOTIATION EXERCISE Contract and Procurement Management – PROJ 598 online

DeVry University, Keller Graduate School of Management
November 30, 2013

Negotiation is the process of making amicable decisions between individuals or groups. In this assignment, I will discuss a negotiation that did not result in the best possible solution for all parties. This negotiation was related to my work experience where I was a realtor who was representing a buyer in negotiation of the property’s price, mortgage loan rate and terms. I am a real estate licensee and also a member of National Association of Realtors. I have been practicing my license for seven years now. Seven years of experiences in real estate industry
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Until this point, I had exercise with my best negotiation skill to move forward the transaction with fair compromises under other terms and conditions. The real conflict had awakened when mortgage broker manipulated about the loan rate and terms. I was involved in a situation where I shouldn’t be. Because my client was my friend’s friend and I was asked to perform the tasks that were beyond the scope of my duties. I tried to negotiate the loan rate and terms on my client’s behalf. The buyer provided all necessary information to me in order to obtain a loan from the bank. Then, I provided my client’s information to a mortgage broker in order to move forward with loan process. The buyer was obtaining a conventional loan just like other typical borrowers. Due to some stricter lending guidelines, the buyer didn’t get loan approval from a major bank. However, the mortgage broker found other alternatives that my clients could get loan approval from a private investment company. Thus, the mortgage broker got a loan deal with private investment that made a loan with extremely high interest rate and 6 years term. The buyer had never asked for this type of loan program. During loan processing, the seller’s agent kept asking the buyer to remove the loan contingency. I advised the buyer not to remove the loan contingency. According to the standard contract

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