CHAPTER 3 Why Some FSBOs Sell and Others Don't
The key to this successful home-selling approach is a revolutionary finding discovered by Italian economist Vilfredo Pareto. The Pareto principle, or the 80/20 rule, is the key to this successful home-selling approach. In 1906, Pareto noticed that 20% of the pea pods in his garden held 80% of the seeds. Taking a closer look at this ratio, he found that 80% of land in his area was owned by 20% of the people. After detailed study, he observed that this ratio held true in many aspects of life. For example: 80% of your income is derived from 20% of your work; 80% of a business’s income is derived from 20% of its customers; 80% of your value to an employer is derived from 20% of your work. In a nutshell, approximately 20% of what you do matters. The other 80% is insignificant. Applying the 80/20 rule can save you time selling your home. Unfortunately, many real estate agents and sellers buy into the false idea that more is more. They completely ignore the Pareto principle. Stop trying to sell people on the entire home. Based on the rule, only 20% of your home’s features are important; the remaining 80% are trivial because they are the same features many other homes in your neighborhood have. Instead of focusing on those trivial features, focus on the unique features to grab the attention of buyers. These features make your home different from others. They’ll make it easier to sell your home for the full asking price. Let’s look at a few real-life 14
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