CHAPTER 3 Why This Rule Matters with Hard-to-Sell Homes
Imagine a buyer in the market for a three-bedroom, two- bathroom home. The agent found him five houses to preview. Each meets his general criteria, and is located in the area he hopes to live. He and his agent drive out to look at the five houses. They all have very similar features. The prices are comparable. In theory, you might think the buyer will have a hard time deciding between houses. But no matter how similar they may seem, no two houses are exactly alike. In real life, however, that’s not the case. The 80/20 rule comes into play. Imagine four of the houses don’t have a pool, but one does. He isn’t aware of this, though, because the agent didn’t mention it. The buyer sees the four houses that don’t have a pool. He isn’t particularly interested in any of them. Then he sees the fifth house and the pool! Suddenly, he is ready to make an offer. He may even pay full asking price, even though this house is more expensive than the others.
THE 80/20 RULE IN ACTION: Buyers focus on unique features
His offer isn’t based on the 80 percent of features this house shares with the rest. Instead, his bid is based on one unique attribute: a pool. The 80/20 rule predicted the sale of this house. 16
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