However, the cost of litigation itself, is generally not as important to such professionals. They usually have insurance which provides for the cost of defense and for any award of damages. Buyers, sellers, and tenants are also concerned with the speedy resolution of their disputes. However, homeowners' or renters' insurance policies do not cover the cost of either a defense or for the payment of damages in most cases. Thus, the expense of protracted litigation is prohibitive for most.
Mediation holds the potential for a resolution within a modest budget.
For all parties, an unsung benefit of mediation is the ability of the parties to choose the mediator. As real estate disputes often involve technical issues involving the law, professional standards, and construction matters, the parties can select a mediator with the proper expertise and experience. This aspect alone can streamline the mediation process, and provide great savings in both cost and frustration. As for the actual cost of mediation, it is dependent on the mediator selected. A real estate mediation generally lasts a minimum of four hours, with six to eight hours being typical.