1. Arbitration for Appraisers
practical approaches in the real world

2. Real Estate Dispute
Leading to…….

3. Arbitration by Appraisers
Leading to…….

4. Arbitration Decision Leading to…….
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5. Satisfied Clients
Leading to…….

6. Employment Security Professional Stature Personal Enrichment

7. Valuation Arbitration an operational definition:
Voluntary
Process of
Resolution of a
Valuation Issue
by Employment of
one or more Valuation Experts
to provide a Binding Decision
Notice I did not say unbiased

8. Arbitration v Litigation
Class
Arbitration
Litigation
Cost
High
Timeliness
Months
Years
Control of Procedures
And Ground Rules
Possible
None
Low

9. Arbitration v Litigation
Class
Arbitration
Litigation
Selection of Decider(s)
Can Select
(1st and 2nd, maybe not 3rd)
Cannot Select
(neither Judge nor Jury)
Appealability
Generally
Not Appealable
Appealable
Tansparency
Can be Opaque
Transparent

10. Some Types of Arbitration
(There are Many More)

11. Middle Arbitrator’s Conclusion
Majority Decision
Tenant (or Tenant’s Arbitrator) finds the 3rd’s decision to be acceptable (relatively beneficial) and becomes part of the “majority”.
Tenant’s Position
Middle Arbitrator’s Conclusion
Landlord’s Position
More than 10% Apart

12. Majority Decision Decision Win Loss More than 10% Apart
Tenant’s Position
Landlord’s Position
More than 10% Apart

13. Middle Arbitrator’s Conclusion
Baseball Arbitration
3rd decides that the position of one party’s “number” is closer than the other’s; therefore, the closer number “Wins” and is the decision.
Tenant’s Position
Middle Arbitrator’s Conclusion
Landlord’s Position
More than 10% Apart

14. Baseball Arbitration Decision Outright Win Outright Loss
Tenant’s Position
Landlord’s Position
More than 10% Apart

15. Middle Arbitrator’s Conclusion
Hybrid Arbitration
3rd Decides.
Closer number is averaged, giving some weight to the more correct position.
Tenant’s Position
Middle Arbitrator’s Conclusion
Landlord’s Position
More than 10% Apart

16. Hybrid Arbitration Outcome Significant Win Significant Loss
Tenant’s Position
Landlord’s Position
More than 10% Apart

17. Arbitration for Appraisers
Panel Discussion
Audience Discussion
Q & A