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The Situation: A 20-acre parcel of land has become available on the outskirts of a growing urban area about 80 kilometres north of the Greater

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The Situation: A 20-acre parcel of land has become available on the outskirts of a growing urban area about 80 kilometres north of the Greater Toronto Area (GTA) - known as Barrie, Ontario. The acreage is on the periphery (within 2 kilometres) of Barrie's city limits. Since Barrie offers a desirable place to raise a family, is growing as a commercial and residential centre a more families move to the region and many travel to work in the Greater Toronto region (it within a 45-minute drive to and from Toronto) the location has many favourable aspects On the other hand, it is becoming a consideration that agricultural land close to large settlements will be essential to the future source of local food supply. In addition, the export potential of food/crops is becoming more important, given the continuing urbanization of society, as evidenced by the growth of large metropolitan centres like Toronto and the increasing consumption of a variety of foods and products in emerging markets. Moreover, the rising cost of transportation along with the loss of productive land for these purposes in the past has made it all the more imperative to protect these lands from continued development. You feel that this growing public concern could hamper the sale or at the very least, the future value, from a commercial standpoint, of the agricultural land in question. At the present time the 20-acre parcel of land is zoned agricultural/residential but there has been some discussion that it could be rezoned to mixed industrial/residential thereby opening up lucrative development possibilities. According to the records available with Barrie's municipal office, similar land it its current agricultural state sells for approximately $8,000.00/acre. A meeting will take place shortly between a potential buyer of this parcel (who is a real estate developer), the real estate agent acting on behalf of the potential buyer, the seller (a farmer whose family has owned the land for over 100 years) and a real estate agent acting on behalf of the seller. 1. Identify a few intangible factors related to this negotiation and explain why each are intangible. (5 Marks) 2. Identify a few tangible factors related to this negotiation and explain why each are tangible. (5 Marks) 3. Identify and provide justification for why you chose the following: (20 Marks) a. Seller's Asking Price b. Buyer's Target Price C. Seller's Target Price d. Seller's Resistance Point e. Buyer's Resistance Point 4. Identify how the Seller could influence the Buyer's Resistance Point and explain why this strategy cou work. (10 Marks) 5. Identify how the Buyer could influence the Seller's Resistance Point and explain why this strategy cou work. (10 Marks) 6. Identify Concessions that the Buyer and Seller could offer to reach a successful outcome and explain why this strategy would work. (5 Marks) 7. Explain which strategy the Buyer and Seller will use to "Close the Deal" and explain why you chose th strategy. (15 Marks) The Situation: A 20-acre parcel of land has become available on the outskirts of a growing urban area about 80 kilometres north of the Greater Toronto Area (GTA) - known as Barrie, Ontario. The acreage is on the periphery (within 2 kilometres) of Barrie's city limits. Since Barrie offers a desirable place to raise a family, is growing as a commercial and residential centre a more families move to the region and many travel to work in the Greater Toronto region (it within a 45-minute drive to and from Toronto) the location has many favourable aspects On the other hand, it is becoming a consideration that agricultural land close to large settlements will be essential to the future source of local food supply. In addition, the export potential of food/crops is becoming more important, given the continuing urbanization of society, as evidenced by the growth of large metropolitan centres like Toronto and the increasing consumption of a variety of foods and products in emerging markets. Moreover, the rising cost of transportation along with the loss of productive land for these purposes in the past has made it all the more imperative to protect these lands from continued development. You feel that this growing public concern could hamper the sale or at the very least, the future value, from a commercial standpoint, of the agricultural land in question. At the present time the 20-acre parcel of land is zoned agricultural/residential but there has been some discussion that it could be rezoned to mixed industrial/residential thereby opening up lucrative development possibilities. According to the records available with Barrie's municipal office, similar land it its current agricultural state sells for approximately $8,000.00/acre. A meeting will take place shortly between a potential buyer of this parcel (who is a real estate developer), the real estate agent acting on behalf of the potential buyer, the seller (a farmer whose family has owned the land for over 100 years) and a real estate agent acting on behalf of the seller. 1. Identify a few intangible factors related to this negotiation and explain why each are intangible. (5 Marks) 2. Identify a few tangible factors related to this negotiation and explain why each are tangible. (5 Marks) 3. Identify and provide justification for why you chose the following: (20 Marks) a. Seller's Asking Price b. Buyer's Target Price C. Seller's Target Price d. Seller's Resistance Point e. Buyer's Resistance Point 4. Identify how the Seller could influence the Buyer's Resistance Point and explain why this strategy cou work. (10 Marks) 5. Identify how the Buyer could influence the Seller's Resistance Point and explain why this strategy cou work. (10 Marks) 6. Identify Concessions that the Buyer and Seller could offer to reach a successful outcome and explain why this strategy would work. (5 Marks) 7. Explain which strategy the Buyer and Seller will use to "Close the Deal" and explain why you chose th strategy. (15 Marks)

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