The 80/20 Principle

Posted by Greg Steinaker on Tuesday, June 17th, 2014 at 9:16am.

Why does 20% if the real estate companies in Orange County conduct 80% of the business?

BanCorp Realty is considered a Top 1% Realtor, which means we also fit into the “20” side of the 80/20 rule. In this second blog posting of how a Realtor becomes part of the elite “20” we’ll first look at some more examples of the 80/20 rule in real life and business.

  • 20% of your clothes are worn 80% of the time

  • 20% of the customers generate 80% of the profits

  • 20% of your results come from 80% of your time

A real estate professional can determine if they are serving their clients in the best possible manner by evaluating how they spend their time. They need to prioritize their schedules and their clientele and they can do this by asking themselves these three questions: what gives my client the greatest return on the transaction at hand? What is most rewarding to my client? What is required of me to make it happen?

A professional could likely answer these questions if they had a definitive working job description for the careers (which they don’t). When they carefully consider how they can achieve these, if they focus on results only they are heading in the right direction. If they truly want to accomplish objectives and be productive in the real estate marketplace they need to provide their client forethought, planning, intelligence and honest purpose in all they do. They also need to keep things simple. If they professional strives for simplicity they can keep their mind on the main thing: serving their client with true service excellence and acting as a true advocate – not a cheerleader.

If a professional is looking out for their clients best interests instead of their own, which unfortunately is not always the case in real estate, it will undoubtedly almost always tilt the real estate transaction into the favor of their client because they are more concerned about their clients well being than the commission that will be paid at closing.

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