Violate this Home-Selling Golden Rule and Miss Out On Your Opportunity

garethpjrealtor
Apr 14, 2021
6 min read

Updated: Jun 15, 2022

We recently learned the Pareto Principle (read our blog post on the Pareto Principle), stating that 80% of your results stem from only 20% of your work. But how does this apply to a seller in the real estate market? What is the 20% that you should be focusing on?

Let’s assume a buyer is in the market for a three-bedroom/two-bath house, and the agent found that buyer five houses to preview. Each meets his general criteria and is located in the area where he hopes to live.

The agent and her buyer drive out to look at the five houses. All five have similar features. The prices are comparable. In theory, you might think the buyer will have a hard time deciding between houses.

No matter how similar they may seem, no two houses are exactly alike. In real life, the 80/20 rule comes into play. Imagine four of the houses don’t have a pool, but one does. The buyer is not 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 might even pay full asking price, even though this house is more expensive than the others.

The buyer’s offer isn’t based on the 80% 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.

Sadly, in this case, much time was wasted finding the perfect house. Had the agent known to look for the 20% difference, this might have been her first stop. As a seller, you can leverage the rule to work in your favor. Draw attention to defining characteristics in your home.

Here is a real-life example. A real estate agent had a client visit from out of town. He did not have a list of criteria; he just liked the area.

The agent drove him from house to house. In each case, this buyer suggested offers that were 10% to 20% below the asking price. He would not budge. She began to worry; the whole day was turning into a big waste of time.

As the sun set, they stopped at one last house. It was not good-looking and had little curb appeal. She was out of options. Nevertheless, this house broke the tough negotiator down.

He was suddenly willing to offer the full asking price! What set this house apart from the others? It wasn’t because the buyer had a thing for ugly houses. Nope. The 80/20 rule kicked in again. Buyers pay more for unique features.

This agent and her client had spent the whole day looking at houses that shared 80% of the same features. He did not care about any of those details. A bedroom was a bedroom as far as he was concerned.

He fell in love with the one remarkable feature of this house. As he walked into the great room, there was a large window. The house sat atop a hill with a gorgeous view. And to top it off, the sun was setting below the distant tree line. That view sold the buyer. The other 80% could be improved.

He did not buy the house because he liked the floor plan or the number of bedrooms and bathrooms. That view caused him to stop negotiating and offer full price on the spot. Such is the power of the 80/20 rule.

Learn how to tap into this rule, and you will not have to settle for less than your asking price.

Leverage a unique selling point. Buyers who fall in love do not haggle over pricing; they make good offers.

In some cases, the 80/20 rule even helps people make a sale without conducting a showing. This is a huge time saver. The house in the following example had languished on the market for months.

Unlike the previous house, this place was not ugly. On the contrary, it was a brand-new custom-built home. But nobody seemed to care. It sat on the market more than seven months without a single offer.

The builder was baffled. His fancy new house would not sell. He ended up firing his agent and hiring a new one. Fortunately, the new agent knew the importance of finding that special feature. He drove out to give the house a thorough investigation.

What he found changed everything. The house had a gorgeous five-acre yard. Other houses being sold in the area were all on one- to two-acre lots.

Not only was the yard bigger, it was more private than other lots available. The new real estate agent marketed the five acres. He mentioned details and a description of the house, but the house was not the main selling point.

He shifted attention to the five-acre lot. In no time, his phone rang! A buyer was relocating and had noticed the house was for sale, but it hadn’t caught his eye.

That changed suddenly when the buyer learned it was built on a five-acre lot. He submitted an offer from 1,000 miles away, never having seen the property in person.

He was afraid someone else would buy it before he could, and he would lose out on the perfect house. That sale happened in 45 days.

The builder was amazed! His house had been on the market close to eight months without so much as a nibble. Suddenly it was sold — purchased, sight unseen, all because of the 80/20 rule.

For a short time, this “unsellable” house became the hottest house on the market.

Don’t create an advertisement like the ads for every other house in the area. Turn a spotlight on something different about your home. You will attract interested buyers willing to pay full price.

SELLING TO INTERESTED BUYERS

Find something unique about your home and build advertisements around that one item. It will catch people’s attention. Buyers who are looking for that one item will ask to come see your home in person.

As a result, you will stop wasting time showing to people who are not interested. Instead, you will be showing your home to buyers who are motivated to make a purchase.

You won’t have to show quite so often. You also won’t have to sift through lowball offers from apathetic buyers. Less stress for you.

Take time to uncover your home’s most attractive and unique features. Compare notes with other houses in the neighborhood to see what makes yours stand out.

POTENTIAL UNIQUE FEATURES

Each house has unique features. You may already have some in mind. If not, these ideas should get you started:

Hilltop views are an excellent defining feature. As with the earlier example, a high vantage point offers a spectacular view of the surrounding area.

Maybe your home looks out on an open field, frequented by wildlife. Many people would like that view.
Perhaps your house has an unobstructed view of the sunset. That would interest potential buyers.
Patios are another great feature. Maybe the rest of your neighbors have smaller patios or none at all. That vital feature could help you sell your home.

Location can set your property apart from others. Not your addressed location, but rather, your location compared to the surrounding homes, such as on a cul-de-sac.

A buyer once paid extra for a townhouse simply because of its location in the complex. Most of the surrounding homes did not have any yard. However, a few shared a large half-acre “yard area.”

One of the owners whose townhome backed up to this yard area sold his townhouse for a higher price. It set his property apart from others on the market.

His home had a characteristic shared by fewer than 10% of the others. He had the only available listing offering that feature. With this easy point of difference, the house sold for a higher price.

Another townhome seller in the same complex did not have a yard, but his property backed up to a lake and fountain. That extra feature helped him sell his townhouse quickly and for a great price.

You might have a private location. For instance, your lot might be partially concealed by trees, or you might have an empty lot next to you. Use this to market your property.
You might have a unique backyard. If you have a larger backyard than your neighbors do, use that to your advantage.
A shady backyard can also help you sell your property. Some people like the idea of lounging in the shade.
A fenced-in backyard is also a big selling point. People with kids and pets flock to homes with fenced backyards.

You also can look at other features. For instance, a finished basement can help you sell your home. You can market a large attic, an extra-large garage, a swimming pool, or anything else that makes your home stand out.

Look for the 20% difference and find a way to market it. That is how you will get results. You cannot just throw the information into your listing, though. You have to take the right approach.

POINTS TO REMEMBER: