But also, there are so many nuances to cap rate.If you are looking at office space, for instance, are in you CBD or suburbs?  

How much more will vary, and can be debated.Which means the seller, if he had a decent agent would NOT list at $200,000.If we are talking about a house that needs no repairs, and has a fair market value of $210,000, then no one would do that deal because closing costs would swallow the profit.As always on these threads, we are getting defensive reactions from people who are real estate professionals whose practice includes assigning contracts, when the criticism being offered is of the hundreds or thousands of clueless idiots messing with people's lives without being able to perform.No one, including the original poster, is criticizing the sort of thing you and Hattie are talking about.  

Do I swallow that knowing I'm getting a great sale price on it? 

It's a tough pill to swallow.

But, there is no law restricting the sale of forms, it's the drafting of the forms that becomes an issue.Anyone can write a contract IF they are a party to that contract, one of my biggest gripes is that people seem to think they know enough about contract law and real estate that they are qualified, they don't have a clue, a hard pill to swallow, but they really don't in addressing all that needs to be addressed.

It's easier for the Tenant to swallow and it  can put a lot more money in their pocket. 

Since the seller knew up front what I was trying to do, wouldn't it make it a lot harder for him to swallow if I backed out?

It's like salmon, swallows and penguins.

Don't say 5 years it sounds to long use months, like 36, 48, 60 months sometimes it is easier for the seller to swallow.

Still I would say a 50/50 split is pretty hard to swallow unless it is a fantastic deal and you have a proven track record.