CHAPTER 7 Avoid This Rule at Your Own Risk
If you’re still stuck in the mindset that more is more when it comes to selling your home, then buckle up, because this chapter is about to change the game. I’m talking about a little concept known as the 80/20 rule, or the Pareto Principle, named after an Italian economist named Vilfredo Pareto. Let me break it down for you in Georgia real estate terms: This rule can make or break your home sale. In 1906, Vilfredo was just minding his own business, studying peas (yes, peas), and he noticed something fascinating. 20 percent of the pea pods contained 80 percent of the seeds. This sparked a chain reaction of observations in his mind, leading him to discover that this 80/20 ratio applied to other areas of life too. In fact, he noticed that 80 percent of the land in his area was owned by just 20 percent of the people.
The 80/20 Rule: A Game Changer
You might think that to sell your house, you need to highlight everything about it. After all, buyers love options, right? Wrong. In real estate, the 80/20 rule applies — you need to focus on the 20 percent of your home that will make the biggest impact. Why? Because 80 percent of your home’s features are probably pretty typical for homes in your neighborhood. And guess what? Buyers have seen it all before. Your granite countertops? Gorgeous, but so are the ones in the other 20 kitchens down the street. Your walk-in closet? Cute, but again, not a game-changer. 15
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