Selling your Home in a Divorce
Chapter 4 &5
THE 80/20 RULE
In 1906 an Italian economist, Villrcdo Pareto, found an intriguing correlation.
Me noticed 20% of the pea pods in his garden held 80% of the peas.
Studying the peas prompted him to take a closer look at this ratio.
In one of his initial discoveries, he found 80% of the land in his area was owned by 20% of the people.
After a detailed study, he observed this ratio held true in many aspects of life.
The Pareto Principle, or the 80/20 rule, is the result of his findings.
When Vince and Sue were shopping for a new home, Vince wanted an ocean view.
They looked at many desirable properties but didn't find any that were right for them Some were overpriced; others had obstructed views.
The search went on for almost a year until they found an older home a short walk from the ocean.
The neglected exterior and dated interior were not encouraging, but when Vince stepped out onto the third-floor balcony off the master suite, he was sold.
Any shortcomings in wall color or fixtures faded away when he took in the view.
He could now see the sunrise from his bedroom window every morning.
What 20% of the home caught the eyes of Vince and Sue? The magnificent third-floor view of the ocean!
When Cam and Kate listed their home, they needed a buyer who wasn't concerned that the house was on an unpaved road.
Though the home was over 10 years old, the interior was updated with fresh, neutral wall colors and carpeting to look brand-new.
The towering trees and established yard gave the home a welcoming curb appeal.
The buyer had also looked at home within miles of Cam and Kate's that had towering trees as well as a koi pond and a patio.
This home was comparable in interior and exterior, but it was on a busy street.
What 20% of the home caught the buyer's eye and prompted him to choose Cam and Kate's home?
The buyer loved the secluded country feel of the home.
The 1.8-acre property was surrounded by pastures, with grand oaks dotting the landscape.
20% of Causes Are Responsible for 80% of Outcomes
•80% of your income is derived from 20% of your work.
•80% of a business's income is derived from 20% of its customers.
•80% of your value to an employer is derived from 20% of your work.
RELATING THE 80/20 RULE TO HOME SELLING
Understanding this concept can save you time in selling your home.
When you use the 80/20 rule, you stop trying to sell people on the entire home.
Applying the rule, you can highlight the 20% of your home's features that make it special.
The remaining 80% of your home still affects the buyer's decision, so don't neglect it.
Your selling point won't be the common features your home shares with the other properties on the market.
Focus on your home's unique features to grab the attention of buyers.
How the 80/20 Rule Applies to Home Sales.
An out-of-town home shopper with no specific requirements contacted a real estate agent to look at available homes for sale.
The agent drove him from house to house.
In each case, this buyer suggested offers 10% to 20% below the asking price without budging.
As the day progressed, the agent's chances of finding a suitable home were dwindling.
They stopped at one last house as the sun set The exterior of the house was dated and the yard untended.
This agent and her client had spent the entire day looking at houses that shared 80% of the same features.
Nevertheless, once the buyer walked into the great room, he wanted to buy the home for the asking price.
What set this house apart from the others? He wasn't too interested in the kitchen, bathrooms, and bedrooms.
A bedroom was a bedroom as far as he was concerned.
He fell in love with the one remarkable feature of this otherwise uninspiring house.
The house sat atop a hill with a beautiful view out of a large picture window.
As they entered the great room, the sun was setting below the distant tree line.
That view sold the buyer.
The remaining parts of the home could be improved.
The home buyer based his decision to buy on the window view from the hillside.
The 20% of the home's features motivated him to offer full price on the spot Such is the power of the 80/20 rule.
In some cases, the 80/20 rule may help people make a sale without even conducting a showing.
The house in the following example had languished on the market for months.
Unlike the previous home, this one was not unattractive. On the contrary, it was a brand-new, custom-built home.
It sat on the market for over seven months without a single offer.
The builder hired a real estate agent who knew the importance of finding that one special feature.
He drove out to give the house a thorough investigation.
He discovered what the property had that the competition did not.
The house had a beautiful five-acre yard. Other houses being sold in the area were on one- to two-acre lots.
Not only was the yard bigger, it was also more private than the other properties.
The real estate agent marketed the property highlighting the five acres along with a description of the house.
Because the house was no longer the main selling point, interest in the property increased.
A buyer was so interested that he submitted an offer from 1,000 miles away.
Fearing that someone else would buy it before he could, he bought it sight unseen.
He didn't want to lose out on his "perfect" home. The sale was completed in 45 days.
The builder was amazed! His house had been on the market for close to eight months.
That small percentage of the home's features was the selling point.
The 80/20 rule unfolds again.
Learn how to apply this rule by leveraging a unique selling point, and you will not have to settle for less man your asking price.
Buyers who fall in love with a home rarely offer a lower price.
By shifting focus to the five acres, the real estate agent captured the interest of buyers immediately.
The house was no longer unsaleable, but desirable.
The 80/20 Rule in Action:
Buyers Are Searching for Unique Features
Spotlight the unique features of your home that set it apart it from the others on the market.
You will attract interested buyers who are willing to pay the asking price.
What does your home or property have to offer that other homes in the area do not?
Perhaps you have a relaxing patio or lush landscaping that will catch a buyer's eye.
Potential Unique Features
Each house will have its unique features.
You may already have some in mind.
If not, these ideas should help to get you started:
•Hilltop views are an excellent defining feature. Like the earlier example, a high vantage point comes with 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.
•Your house might have an unobstructed view of the sunset. That would interest potential buyers.
•Patios are another great feature. Maybe the rest of your neighbors do not have patios, or theirs are smaller.
That vital feature could help you sell your home.
•The location is something else that can set your property apart.
If your home is on a cul-de-sac or has a corner lot, make the most of it in your marketing.
A buyer once paid extra for a townhouse simply because of its location in the complex.
Most of the surrounding homes did not have yards.
However, a few shared a half-acre "yard area."
An owner whose townhouse bordered this yard area was able to sell his home for a higher price than other townhouses 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 attractive point of difference, the house sold for a higher price.
Another townhouse seller (in the same complex) found a different unique feature.
Although he did not have a yard, he was still able to use his location to his advantage.
His property backed up to a lake and fountain.
This unique feature helped him sell his townhouse quickly and for a great price.
•You might have a private location. For instance, your lot may 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, feature it 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 backyard is also a big selling point. People with kids and pets look for homes with fenced backyards.
•You can also look at other features.
For instance, a finished basement can help you sell your home.
You can also 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 Market the Feature to Get Results
Follow the 80/20 rule and 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 casual shoppers.
Keeping this in mind, it is essential you take the time to uncover your home's most attractive and unique features.
Compare your house with others in the neighborhood to see what makes yours stand out.
Next chapter in a few days .