Please answer all the parts to this learning exercise.

LEARNING EXERCISE: BUYING A HOUSE The purpose of this exercise is to apply the five negotiation skills presented in this chapter to an actual negotiation situation. You wish to buy a home in a particular neighborhood because you like it and it is in the best school district. Your family needs at least four bedrooms, 2 baths, and a two-car garage. At this time you have twice viewed one house that meets all of your needs and is located at 5656 Valley Oak Court. Your agent has provided you with the information on this house as well as five other houses in the neighborhood (A through E in the table below) that meet your criteria and have sold in the past year. The house on Valley Oak Court is listed for $329,000. Review the following information and answer these skills questions: Skill 3.1: Is this a distributive bargaining situation? Why or why not? Skill 3.2: How will you determine your reservation price? Skill 3. What initial offer should you make to use bracketing and achieve your target price of $310,000? Skill 3.4: Which norm(s) can you utilize in presenting your initial offer? Skill 3.5: How can you frame an initial offer that incorporates the norm(s) you are applying? Price Square (000) Feet Bed Finished Time on Rooms Rooms Basement Baths Garages Market Miscellaneous House 5656 Valley Oak ??? 3,600 $359 3,900 $349 4,100 10 12 12 4 4 4 No Yes Yes 2 3.5 25 2 3 2 6 mo. 2 mo. 3 mo. $319 3,600 13 5 Yes 4 2 6 mo. pantry, all brick River view, central vac, large pantry Large wooded lot cul-de-sac, crown molding Large deck w/arbor, Corian counters, alarm Wooded lot. pantry, fans Private yard, brick, custom shelves $275 $246 3,480 3. 9 8 4 4 No No 252 2. Smo 8 me. 2