Question

Your brother-in-law (from Q6) has made an offer on the property and you have taken this to the vendors. The offer is $100,000 under the advertised price. The vendors have told you previously in a private conversation, that they would potentially accept $100,000 under the asking price as they just want to 'get rid of it'. Identify the potential conflict that could arise and explain how you would respond to and resolve this conflict.

Answer 1

The potential conflict arises if the buyer offers exactly the amount the vendors previously mentioned, as they could feel taken advantage of. To resolve the conflict, be open and honest, explain the fairness of the offer, and discuss willingness to negotiate further.

Step-by-step explanation:

The potential conflict in this situation arises from the discrepancy between the offer your brother-in-law has made, which is $100,000 under the advertised price, and the vendors' indication that they might accept $100,000 under the asking price in a private conversation with you. The conflict revolves around the difference between the advertised price and the vendors' bottom line.

Here's a suggested approach to respond to and resolve this conflict:

Communication is Key:

Open communication is crucial in resolving conflicts. Start by having a candid conversation with your brother-in-law. Discuss the vendors' initial willingness to accept $100,000 under the asking price and explain the current situation. Ensure that your brother-in-law understands the vendors' perspective.

Negotiate with Brother-in-law:

Try to negotiate a middle ground that is acceptable to both parties. It could involve finding a compromise between the advertised price and the vendors' bottom line. Explore whether your brother-in-law would be willing to increase his offer, considering the vendors' willingness to go lower.

Consult the Vendors:

Before making any decisions or commitments, consult with the vendors again. Present your brother-in-law's offer and gauge their reaction. They might be willing to compromise further or might reaffirm their initial willingness to accept $100,000 under the asking price.

Explore Other Terms:

If monetary negotiations reach an impasse, consider exploring other terms of the deal that could be adjusted. This might include settlement timelines, contingencies, or other aspects of the transaction that could be modified to make the deal more appealing to both parties.

Seek Professional Advice:

If the negotiations become challenging, it might be beneficial to seek advice from a real estate professional or mediator. They can provide insights into fair market value, prevailing market conditions, and potential compromises that could be made to facilitate the deal.

Maintain Neutrality:

As the intermediary between your brother-in-law and the vendors, it's essential to remain neutral. Avoid taking sides and focus on finding a mutually agreeable solution. Reinforce your commitment to helping both parties reach a fair and satisfactory outcome.

Document Agreements:

Once an agreement is reached, document the terms clearly to avoid misunderstandings later. This can include a written offer, counteroffers, and any amendments to the original terms of the sale.

Remember, conflicts are a natural part of negotiations, and resolving them transparently and respectfully is key to maintaining trust and achieving a successful outcome for all parties involved.

Answer 2

The potential conflict arises when the tutor's brother-in-law makes an offer $100,000 below the advertised price, which the vendors previously indicated they would accept. To resolve the conflict, the tutor must maintain confidentiality, represent both parties honestly, and facilitate negotiations ethically until an agreement is reached.

Step-by-step explanation:

The scenario describes a potential conflict in a real estate transaction where the tutor’s brother-in-law has made an offer on a property that is $100,000 under the advertised price. The vendors had privately indicated they would accept such an offer as they wish to quickly sell the property.

To resolve this conflict, the tutor, acting as the agent, must adhere to professional ethics by maintaining confidentiality about the vendors’ willingness to accept a lower price. Simultaneously, the tutor should handle the negotiation process impartially and fairly, representing both parties’ interests. This could involve presenting the offer to the vendors without bias and allowing them to make an informed decision based on the offer received.

If the vendors accept the offer, the conflict would be resolved by the successful sale of the property. If not, the tutor must continue to facilitate negotiations between the buyer and seller until both parties reach a mutual agreement, always acting within the scope of ethical guidelines and the best interest of both the buyer and seller.