BUS 5421 - Managerial Economics Week 6: Homework Questions

Chapter 16

16-3 House Closing Youve entered a contract to purchase a new house, and the closing is scheduled for next week. Its typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. You have three options for the closing: (1) attend yourself, (2) send an attorney authorized to close only per the previously negotiated terms, or (3) pre-sign all the closing documents per the current terms and not attend the closing. Which of these would be most advantageous from a bargaining position?
Answer: Knowledge is power in negotiations. If you are selling your home, your best preparation steps are to (a) get your home into tip-top condition so buyers won't...