Partner wants out--need advice on a fair "buy-out" price

[Kip Pierson]

Good evening y'all!

I'm new to the forums and the community, but I have been lurking from afar for awhile now.  My quick impulse to join the forums comes from a need to seek advice on a current dilemma with one of my properties. 

Currently one of my partners wants to liquidate his half (50%) of the partnership and has offered me a price.  I feel the price too high, mainly because it lacks applying any fees that we would have if we sold the place today.  My position is we should appraise the house, minus the fees of selling (somewhere between 7-10%), subtract the debt left on the mortgage and then divide it by 2.  Whatever that number is, is what his half is worth.  He contends that no fees should apply since I'll be making more money in the long run and that we should just get an appraisal, minus the mortgage debt and then divide by 2.  In his scenario, if I had to sell tomorrow by myself because of an emergency or need, I would already be down the 7-10% for the fees associated by selling it.  It doesn't seem right to me.

Does anyone have any experience or advice?  Am I crazy to think the fees should be factored in?...he seems to think so.  Is there another formula I should seek out?

Thanks in advance.

KIP