The BrazzelDazzle Blog

The notion of "splitting the difference" should have no place in real estate negotiations!  This concept of "fairness" goes back at least to the story of King Solomon.  When faced with two women who claimed to be the Mother of an infant (one was the true parent and one an impostor), the King suggested splitting the baby in half and giving each woman her share.  When the true Mother protested and insisted that he give the baby to the impostor, King Solomon (in his wisdom!) saw the truth and gave the baby to his Mother.

In the midst of negotiating a sales price in real estate, a Buyer or Seller will often come up with the proposal to "split the difference" between two prices .  The temptation is to capitulate in the spirit of "fairness", "equity", and a "win/win" outcome.   But, unless this number is where you want to be in the end ... I think "splitting the difference" should have no place in real estate negotiations!

WHY? ...

• "Fairness" is not required in real estate price negotiations. 
• "Splitting the difference" puts a capricious element into the negotiations.  A sales price should be determined by the value of the property ... not "splitting the difference".
• Oftentimes, houses have been priced aggressively and accurately ... why should the Seller "split the difference" with an unreasonable Buyer?  Where's the fairness in that?

Of course, it's always wonderful if both parties in a negotiation feel great about the outcome ... but, in my opinion, "splitting the difference" isn't the way to get there.