Abstract
The paper compares the already established characteristics of the property market negotiator between professional property negotiators (agents/mangers) and non-professional property negotiators to property transactions in order to assess significant difference in their negotiation outcome (final price) from their Principals viewpoints. The target populations in the study were the land and real property owners in the three selected low, medium and high residential densities of Akure city, Nigeria. Their sample size were proportionately selected from their varying sampling frame and stratified random sampling adopted led to identification of distinct types of the residential properties in each densities. Structured close-ended questionnaire was administered on these owners to elicit their perception on the characteristics of their property negotiators at the point of purchase of land or letting of the residences and the negation outcomes. Data analysis was both descriptive and inferential statistics of mean scores with Kruskal Wallis Test and independent sample t-test respectively. Findings showed little significant differences in the ranking for both professional and non-professional negotiators characteristics among the respondents and there were slight differences in the land/property values negotiated by both negotiators. However there was sparse information about the estimation of the initial value/price among these negotiators as most asking/initial value has been found to be dictated or influenced by initial property owners/vendors. Despite the intrinsic nature of real property, the expectation is that the fundamental theory of price determination should be displayed in every transaction. The paper recommends that all market participants must be at the same pace of knowledge about previous and prevailing market prices/values to promote mutual and balanced negotiation outcome; otherwise there must be public regulation of market prices/values to increase suboptimal and reduce hyper-optimal outcomes. Keywords : Asking/Initial Price, Negotiation Outcome, Negotiators’ Characteristics, Professionals and Non-Professionals, Residential Property Market, DOI : 10.7176/JESD/10-2-03
Highlights
Real property assets are unique and the price cannot be set as the price would be set for a fungible commodity traded in a market in which pricing information is readily available but need negotiation process in its market (Black, 1997)
5.0 CONCLUSION AND RECOMMENDATIONS The study examined the differences in the characteristics of both professional and non-professional property market negotiators; and their negotiation outcomes within the residential properties in Akure, a medium sized growing city in Nigeria with a view to determining the Principals’ knowledge of their prevalence in achieving their objectives
The established characteristics of property negotiators from literature were ascertained by the principals to be possessed by both the professional and nonprofessional with little differences in their ratings
Summary
Real property assets are unique and the price cannot be set as the price would be set for a fungible commodity traded in a market in which pricing information is readily available but need negotiation process in its market (Black, 1997). Negotiation is noted as a process that brings two or more parties together in order to accomplish mutually beneficial outcomes, while meeting individual goals (Swaidan, 2007). Each of the market negotiators skills and techniques play a part in arriving at final price which often differ or varied or non-existing at times. These skills and techniques or lack of them reflect in the final outcome. While interest based negotiation is where both parties depend on each other to achieve a common goal or objectives. The extent to fairness prevail depend opun both parties knowledge about the market
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