CHAPTER 8 Why This 20% Rule Applies ule Applies to Hard-to-Sell Homes o-Sell Homes When it comes to selling hard-to-sell homes, the Pareto Principle—often called the 80/20 Rule—can be a game-changer. This rule states that 80% of the outcomes come from 20% of the inputs. In real estate, this means that a small percentage of a home’s features can drive the majority of buyer interest and ultimately lead to a successful sale. Let’s explore how to apply this principle to homes that have struggled to sell.
The 80/20 Rule in Action: Finding the Right Buyer
Imagine a buyer looking for a three-bedroom, two-bathroom home. Their agent shows them five properties that meet their basic criteria and are in the right location. On paper, these homes seem identical—comparable features, similar prices. You’d think it would be tough for the buyer to decide, but in reality, it rarely is. No two homes are exactly alike. Even among comparable properties, unique features set one apart. For instance, if only one of these homes has a pool, that difference could instantly make it the standout choice. The buyer, unaware of the pool beforehand, tours the first four homes without much excitement. Then they see the fifth home with the pool—it’s exactly what they’ve been dreaming of. Suddenly, they’re ready to make an offer, even if the home is priced higher. The buyer’s decision wasn’t influenced by the 80% of shared features but by the unique 20%—the pool. This example 23
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