CHAPTER 7 Avoid This Rule at Your Own Risk One of the most powerful concepts for selling your home effectively is rooted in a discovery by Italian economist Vilfredo Pareto. Known as the Pareto Principle, or the 80/20 Rule, this concept can revolutionize your approach to selling your home. What Is the 80/20 Rule? In 1906, Pareto observed an intriguing pattern in his garden: 20 percent of the pea pods produced 80 percent of the seeds. Fascinated, he began to study this ratio more broadly and found it applied to many areas of life. For example: • 80 percent of land ownership: In Pareto’s time, 80 percent of land was owned by 20 percent of the people. • 80 percent of business revenue: Most businesses find that 80 percent of their revenue comes from 20 percent of their customers. • 80 percent of your productivity: On any given day, 80 percent of your most valuable work comes from just 20 percent of your efforts. The principle suggests that 20 percent of what you do produces 80 percent of the results. The remaining 80 percent contributes little to the outcome. How the 80/20 Rule Applies to Selling Your Home Many home sellers fall into the trap of believing that more is more, that the more features they highlight, the more buyers 20
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