CHAPTER 7 Warning: Disregard This Rule at Your Own Risk
The key to a successful approach in selling your property lies in a groundbreaking concept discovered by an Italian economist named Vilfredo Pareto. Known as the Pareto Principle or the 80/ 20 rule, this principle applies to all aspects of life. In 1906, Vilfredo made an intriguing observation in his garden - 20% of the pea pods held 80% of the seeds. This prompted him to dive deeper into this ratio and he soon discovered that it held true in various aspects of life. The essence of the Pareto Principle is that 20% is crucial, while the remaining 80% is trivial. This concept is evident in many scenarios. For instance, 80 % of your income is derived from 20% of your work, 80% of a business' income is derived from 20% of their customers, and 80% of your value to an employer is derived from 20% of your work. In a nutshell, approximately 20% of what you do truly matters, while the other 80% is inconsequential. It's important to note that the split is not always exactly 80/20; it can be 70/30 or any other percentage. The key is that the two numbers are imbalanced and typically close to 80/20. So, how can you apply the 80/20 principle to selling your home? Understanding this concept can save you time and effort in the selling process. Unfortunately, many sellers fall into the trap of believing that more is always better, completely disregarding the Pareto Principle. 20
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