` Here’s another example of a stupid mistake that caused a seller to lose about $50,000 on their home sale. An
Avoid this Rule at Your Own Risk
Dated: May 5 2020
The key to this entire selling approach is a revolutionary finding discovered by an Italian economist. His name was Wilfred Pareto. The most important thing we can learn from him is the Pareto Principle, better known informally as the 80/20 rule.
The 80/20 Rule applies
to all aspects of life.
In 1906, Wilfred found a very intriguing correlation. He noticed 20% of the pea pods in his garden help 80% of the seeds!
Studying the seeds prompted him to take a closer look at this ratio. In one of his initial discoveries, he found 80% of land in his area was owned by 20% of the people.
After a detailed study, he observed this ratio held true in many aspects of life. The Pareto Principle, or the 80/20 Rule, is a result of his findings.
The 20% is vital and 80% is trivial.
· 80 percent of your income is derived from 20 percent of your work.
· 80 percent of a business’s income is derived from 20 percent of its customers.
· 80 percent of your value to an employer is derived from 20 percent of your work.
You might wonder what all of this means. In a nutshell, it means some things are substantially more important than other things. In other words, things are not equal. Approximately 20% of what you do matters. The other 80% is insignificant.
It is important to understand this is not always split at 80/20. It can be 70/30 or another percentage. The key is that the two numbers are not equal and they are usually close to 80/20.
How can you apply the 80/20 Principle
to selling your home?
Understanding this concept can save you time selling your home. Unfortunately, many sellers buy into the false idea more is more. They completely ignore the Pareto Principle.
Now that you know what the 80/20 Rule is, you are probably wondering how it applies to selling your home.
When you use the 80/20 principle in selling, you stop trying to sell people on the entire home. Based on the rules, only 20% of your home’s features are important. The remaining 80% is trivial.
That is because they are the same features many other homes in your neighborhood have. Instead of focusing on those trivial features, you need to focus on the vital features.
When you sell your home, focus on
unique features to grab the attention of buyers.
These features make your home different from the others. These features will make it easier to see your home for the full asking price.
Let’s look at a few real-life applications and examples of how the 80/20 Rule can have an impact on selling your home.
For the majority of people, the purchase or sale of a home is their largest single investment. My goal is to guide you successfully and easily through the contractual, investment and emotional decisio....