The coffee is hot and we’re ready for the sun to rise so we can find out if that rumbling 4AM Thunderstorm felled any trees in the yard.
Between Cicadas and turbulent weather, Mother Nature sure is entertaining us this Spring.
In the early 1900’s, Vilfredo Pareto Observed a phenomenon that would later be coined the Pareto Principle . . . otherwise know as the 20-80 Principle or rule. Pareto’s initial observation was that 80% of the land in Italy was owned by 20% of the people. He then saw the same disproportionate ratio showing up in virtually everything he studied.
The 20% came to be known as “The Vital Few”
The 80% were “The Trivial Many”
I named our new real estate firm Pareto Realty with the tag line: “The Vital Few” and the intentional purpose that we (Members of the firm) focus on living “High Performance Lives” . . . That is, staying in our 20%.
Knowing the difference between “What’s 20%?” and “What’s 80%?” seems to be an essential ingredient in any recipe for successful completion of any task.
When we KNOW our 20% Vital Few, we can FOCUS and do MORE with LESS.
We REALTORS know this also applies to our work with real Estate clients.
For Home Buyers:
- 20% of the neighborhoods out there are “right”
- 20% of the houses on the market in those 20% neighborhoods have good potential for being THE house
- We REALTORS listen to and study Home Buyer’s needs and wants and focus on their 20%
Without this level of focus, the house hunting process can be long and cumbersome . . . ESPECIALLY in an environment with SO many choices. Do you REALLY want to tour a couple hundred houses, when only @ 40 of them even “qualify” with your parameters . . . and likely only 8 of them (20% of the 40) are CLOSE matches?
In today’s technologically advanced home shopping environment, a nicely focused team of Real Estate Professional and Home Buyer can very realistically sift the 80% out of the search on-line in the matter of a couple of hours . . . and probably hone that list to the TOP 20% (Vital Few) and actually only physically tour 5-10 houses before finding THE house.
Works the same way for home Sellers.
- Knowing that We cannot create the market conditions, we know we must pay particular attention to identifying the “20% features” of the house we are selling. What’s special about this house?
- Our perspective Buyers are sifting through listings on-line looking for reasons to eliminate houses as possibilities, so our on-line presence (PICTURES and details) must be ALL about the 20%
- Marketing to the masses (80%) doesn’t sell the house because “they” aren’t “real buyers” . . . We must target market to the people who ARE interested in buying a home like this.
- Clarity of The Home Owner’s motivation to move/sell is critical. Without sufficient motivation, it’ll be an 80% experience and the house will flounder on the market for months. The Home Owner must be willing to stay in the 20% and do whatever it takes to sell the house . . . Knowing that the reward is realization of the goal of moving.
When folks approach me (knowing that I am a Real Estate Broker) and ask how things are going, I can confidently say that as long as I am staying in my 20% things are moving along . . . and I focus on my 20% EVERY day . . . and things ARE moving along 🙂
I agree with Vilfredo Pareto that this is true for all people and in all aspects of our lives.
If things aren’t going well in anything you do, stop and think 20-80.
Do you know what the 20% is?
Do you know what the 80% is?
Where’s your focus?
PS – The real Estate market here in Middle TN IS moving, and I and our growing team of Pareto Realty Real Estate REALTORS stand poised and ready to work with House Buyers and Sellers to ID their 20% and accomplish that move they’ve been dreaming about but thought the economic conditions preclude it.
If you’ve even got an itch for a move (or know someone who does), give us a call.