Eight percent of results will come from just twenty percent of the action
This is the Pareto’s principle, attributed to Italian economist and philosopher Vilfredo Pareto, who in 1906 observed an intriguing correlation. The story is that he began work on the “80/20 rule” with the observation that 20% of the pea plants in his harden generated 80% of the healthy pea pods.
This observation caused him to explore uneven distributions. He discovered that 80% of the land in Italy was owned by just 20% of the population. He investigated different industries and found that 80% of production typically came from just 20% of the companies. The generalization became the concept that 80% of results will come from 20% of the action.
While it does not always come to be an exact 80/20 ration, this imbalance is often seen in varios business cases:
- 20% of sales rep generate 80% of total sales
- 20% of customers account for 80% of total profits
- 20% of most reported software bugs cause 80% of software crashes
- 20% of patients account for 80% of healthcare spendings
Relating the 80/20 Rule to Home Selling
Understanding the 80/20 rule concept can save you time in selling your home. Applying the 80/20 rule, you stop trying to sell people on the entire home. Applying the rule, you can highlight the 20% of your home’s features that make it special. The remaining 80% of your hoje still affects the buyer’s decision, so do not neglect it, but in photographs and showings, feature the elements that makes you home special.
The 80/20 Rule in Action
Buyers Are Searching For Unique Features
Decide upon, improve, if necessary, and spotlight the unique features of your home in marketing copy, online and print photographs, and in showing the house. Do not spend much time explaining how you can convert the storage room to another full bath; instead, lead the dog-owning prospect to the fenced-off dog run in the unusually large backyard. If the home has a certain feature a buyer is specifically looking for, highlighting this aspect in marketing efforts will attract interested buyer willing to pay the asking price.
Look For the 20% Difference and Market the Feature
Following the 80/20 rule can lessen the time showing to people who aren’t interested. Instead, you will be showing your home to buyers whoa are motivated to make a purchase.
You won’t have to show as frequently. You also won’t have to sift through low-ball offers from casual shoppers. Keeping this in mind, you must take the time to uncover your home’s most attractive and unique features and improve them to their highest potential. Compare your home with others in the neighborhood to see what makes yours stand out. Work with that.
Excerpted from my book “Selling Secrets – You Can’t Afford to Miss”
Ricardo Parente, Realtor®
Coldwell Banker Realty | Winter Park, FL