CHAPTER 2
WHY SOME FSBO s SELL AND OTHERS DON’T
The key to this successful home selling approach is a revolutionary finding discovered by Italian economist Vilfredo Pareto. His greatest contribution, the Pareto Principle, is better known informally as the 80/20 rule . 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 this ratio held true in many aspects of life. For example: s 80% of your income is derived from 20% of your work. s 80% of a business’s income is derived from 20% of their customers. s 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. It is important to understand this is not always split at 80/20. It can be 70/30 or another percentage. The key is that the two numbers are not equal and they are usually close to 80/20. 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.
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