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Mediation Is it better than arbitration?

By
Real Estate Agent with Coldwell Banker

I was in Saratoga Springs for a few days for the NYS Association of Realtor Business Meetings.

It is amazing how much gets done in a few days twice a year with two meetings a year. The rest of the business is conducted at the offices and through e-mails, phone calls and smaller meetings.

One of the groups I was in was a Mediator's Forum. It consisted of mediators from all over the state. Many had taken the National Association of Realtor Mediator Training. There were some great discussions.

In our businesses, very often the people we can have problems with are people that we will be working with on other deals in the future. That in itself is probably one of the best reasons for mediating instead of arbitrating.

If you have a problem that could be arbitrated, I would advise trying to mediate first.

After a mediation you almost always walk away with a better understanding of the situation and usually a solution. Either making both people happy, or equally unhappy :).

When you go to arbitration, there is a winner and a loser, but very often the relationship continues with difficulty.

I would urge people to try mediation in many areas of life. Instead of a court divorce, instead of a lawsuit. I think especially with a divorce when there are children involved it is a great solution if you can get beyond the negative emotions.

All the best!

Bill Schwent
Casa Tierra Realty - Santa Fe, NM
Santa Fe Broker

Kevin,

The other good thing about arbitration within our Realtor community is that attorneys are rarely involved.  A Realtor can, of course, choose to have an attorney as the counsel, but most do not. Mediation often is a win-win resolution to a business dispute and you always have arbitration to fall back to if the mediation does not work out.

Sep 18, 2008 06:57 AM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Kevin- I think Bill just answered my question. I was going to ask if you go to mediation and are not satisfied can you continue with arbitration?

Sep 18, 2008 08:19 AM
Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Hi Kevin,I definitely believe in mediation.  I was trained to mediate in a volunteer group I was involved in and it really can help to smooth the way for future relations.  A lot of schools are running peer mediation groups too now and they have seen a lot of success.  Good blog.

Sep 18, 2008 08:54 AM
Kevin O'Shea
Coldwell Banker - White Plains, NY
White Plains, NY Real Estate

Bill: Thanks, I didn't mention that you can always continue to arbitration if it doesn't work out.

Lori: Yes, glad you asked :)

Paddy: Thanks, it has been incredibly useful here.

Sep 18, 2008 09:37 AM
Carol Culkin
Diamond Partners Inc - Overland Park, KS
Overland Park Residential Real Estate

Kevin - I have a client's who just remarried after both divorced - they told me legal fees were 6 digits! Yeah, I'd say mediation is the way to go.

Sep 18, 2008 01:47 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I agree, anytime you geta 3rd or 4th party involved it gets messier!

Sep 18, 2008 02:14 PM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Kevin,

As you have said, in Mediation it is a win-win but in Arbitration it is only win-lose and you never know how the Arbitration panel will find.

Sep 18, 2008 09:24 PM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

Kevin. I hope I never have to do either. Great post. Thanks.

Sep 18, 2008 10:49 PM
Kevin O'Shea
Coldwell Banker - White Plains, NY
White Plains, NY Real Estate

Carol:  Unfortunately divorce can become so contentious that it gets very costly.

William:  The idea is to try to find that meeting of the minds, without ill feelings after.

Don:  It is great when you can get a win-win.  Thanks.

Ellie:  Many issues can be resolved before mediation or arbitration by picking up the phone and talking to the other broker.

 

Sep 19, 2008 04:37 AM