alike.
This is where something called the “80/20 Rule” comes into play. The 80/20 Rule, also known as the Pareto principle (suggested by Joseph M. Juran and named after Italian economist Vilfredo Pareto), states that for many situations, about 80% of results, or effects, will come from about 20% of efforts, or causes. Let’s say that one out of the five houses has a pool. The buyer is unaware of this feature, however, because the agent didn’t bother to mention it. The buyer tours the four houses without a pool and isn’t particularly interested in any of them. Then he sees the fifth house with the pool. Suddenly, he is ready to make an offer. He may even pay full asking price, even though this house is more expensive than the others. THE 80/20 RULE IN ACTION: BUYERS FOCUS ON UNIQUE FEATURES This buyer’s offer isn’t based on the 80% of features this house shared with the rest. Instead, his bid is based on one unique attribute: the pool. The 80/20 Rule predicted the sale of this house. Unfortunately, a lot of time was wasted in finding the perfect house. Had the agent known to look for the 20% difference, this may have been their first stop. As a seller, you can leverage the rule to work in your favor. Draw attention to defining the characteristics in your home. In one actual example, a real estate agent was contacted by an out-of-town client. He didn’t present a list of criteria for his house hunt. All he mentioned was that he liked the area. The agent drove him from house to house. Each time, the buyer
34
Powered by FlippingBook