But the thing is, the guy is willing and actively trying to kill you. If you give him the $5000, what's to stop him from breaking into your neighbor's house and trying to kill them? It worked so well for him the first time after all. And odds are, they won't have protection from the elder gods on their side.
Hopefully the $5000 would get him through whatever crisis he was in that required him to rob people's houses. If not, well, killing him would definitely result in someone dying while the other way probably would not. The neighbor may not be home, or the neighbor might not resist, or the neighbor could overpower him, etc.
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Congratulations to SuperNiceDog, Guru Winner, who was smart enough to pick
your 7 time champion, Link.