Negotiating or Bidding

Negotiating or Bidding

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Negotiating or Bidding

Introduction

            The article House Bidding Wars Wane as Booming Markets Cool by Prashant Gopal looks at the record sales during the year 2013 as opposed to the previous years and the behaviors of the markets regarding real estates. The article highlights the trends registered by the several homeowners in the United States who had inventory problems and the issues brought by the supply of market homes. The bidding wars had cost the country large gains in the home prices earlier on, but the shift witnessed had seen the prices cool off. House Bidding Wars Wane as Booming Markets Cool by Prashant Gopal is an informative tool necessary for bidding tactics in business transactions.

Discussion

            The article summarizes the drop in percentage of the listing prices from 25% during September in the year 2013 down to 23.8% in October (Gopal 2013). The author categorically analyses the change in trends of customer behaviors as attributed by the need to bid wisely and learn on the value of the homes. The rush witnessed in the previous periods had seen he prices surge while the mortgage rates had increased sharply. The affordability created by the market trends had reduces leading to more sellers enlisting their properties. Negative equities had seen the diminishing numbers of homeowners as the houses were pushed to the market. The housing crash had taken the limiting of sales to a lower level.

            In analysis of the areas prone to the pullback, the author lists Phoenix as one of the beneficiary locations that had faced greater expectations. There had been a jump in costs of borrowing as this discouraged some buyers. The government had a role to play by having a shutdown enforced. The interest rates from borrowing were relatively easy as studied by the economists while demands had slowed as the prices grew fast. In the conclusion on the future trends as earmarked by a listed economist, the rates would go back to the normal levels unlike the previous high percentages of 32 and above.

            The article is informative and can be used when dealing with business transactions. Due to the analysis carried out by the economists on the customer behaviors, an individual should learn to take time when dealing with bids of any kind. Due to great demand, the levels of supplies are usually driven to higher rates (Kumar 2007. As a positive impact to a business transaction, one should study the potential pitfalls that encompass a deal of any kind before investing. Secondly, the future projections from the market forces and environment can be a good indicator of profitability of any transaction or investment. It can help in gaining an upper hand on the terms for agreement in order to limit the chances of negative setbacks.

Conclusion

            From the analysis of House Bidding Wars Wane as Booming Markets Cool by Prashant Gopal, an individual can utilize bidding skills and tactics to ensure maximum profitability on any business venture. On a personal level, the article has enabled me to develop a background check on any business proposal before carrying out any bids or negotiations. Careful analysis of the business environment is essential as well as understanding the market forces, limiting entities and assurances from credible analysts. However, it is also clear that the unpredictable changes in transactions should act as cushion incase of any unintended drawbacks or eventualities from the deal.

References:

Gopal, P. (2013, November 21). House Bidding Wars Wane as Booming Markets Cool. BusinessWeek.

Kumar, V. (2007). Logistics management [i.e. management]. Jaipur: Print Media Publications.