HOW THE 80/20 RULE APPLIES TO HOME SALES
An out-of-town buyer with no specific requirements contacted a real estate agent to view available homes. The agent spent the day showing various properties, but the buyer repeatedly made offers 10% to 20% below asking price and refused to budge. As the day wore on, the agent's chances of finding the right home seemed slim. Their last stop was a house with an outdated exterior and an unkempt yard. Like many of the homes they had seen that day, it shared 80% of the same features. However, as soon as the buyer stepped inside, everything changed—he was ready to purchase the home at full asking price. What set this house apart? The kitchen, bathrooms, and bedrooms didn’t impress him. To him, a bedroom was just a bedroom. But the home’s defining feature captivated him. The house sat atop a hill with a stunning view framed by a large picture window. As they entered the great room, the sun was setting behind the distant tree line. That view sold the buyer instantly. Everything else in the house could be updated, but this one feature made it stand out. The buyer's decision to purchase was based entirely on the 20% of the home’s features that mattered most to him. The power of the 80/20 rule was undeniable. In some cases, the 80/20 rule can help a home sell without even requiring a showing. Consider the case of a brand-new, custom- built home that had been on the market for over seven months without a single offer.
Unlike the previous home, this property wasn’t unattractive. It
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