Which method of dispute resolution involves a neutral third party but is only advisory?

Mediation involves a neutral third party who facilitates a discussion between the disputing parties to help them reach a mutual agreement. Unlike arbitration, where the arbitrator makes a binding decision, mediators provide advisory input and assistance, but they do not render a decision that the parties are legally obligated to follow. This advisory nature allows the disputing parties to maintain control over the outcome, as the mediator's role is to guide discussions and help clarify issues rather than impose a solution.

In contrast, arbitration results in a binding resolution, while litigation involves court proceedings and a judge or jury making binding decisions. The appraisal process typically refers to evaluating the value of a claim or property and does not have the same advisory role as mediation. Thus, mediation is the method characterized by neutral facilitation without binding authority.