“20% of agents close 80% of the deals” is a familiar claim. It sounds precise, but it is not a universal measurement of how real estate works.

I’ll explain what the Pareto principle means, what available agent-production data says, and how I would use those numbers when choosing an agent in Mississippi. The useful question is not whether an agent belongs to a percentage. It is whether the agent has relevant experience and time for your transaction.

What the 80/20 rule means

The Pareto principle describes an uneven distribution: a relatively small share of causes, people, or activities may account for a larger share of results. In real estate, people use it to describe agent production, saying a small share of agents close most transactions. It is a way to describe a possible pattern, not a rule that every market must follow.

InvestNext describes the general principle this way: “roughly 80% of effects come from 20% of causes.” (InvestNext) That broad business observation does not establish that any particular real estate market has an exact 80/20 split.

The traditional real estate version says 20% of agents close 80% of transactions. But a ratio depends on what is counted: transactions, transaction sides, sales volume, or agent income. It also depends on the time period, the market, and which agents are included. Percentages that use different definitions are not necessarily comparable.

The data is more complicated than 80/20

A May 2025 article in South Florida Agent Magazine says CoreLogic/Cotality data examined by Mike DelPrete puts the distribution closer to 65/20 than to the familiar 80/20 ratio. (South Florida Agent Magazine) The article says the data covers 85% of the market, or 840,000 agents and 3.4 million transactions, but does not state the data period. (South Florida Agent Magazine) Treat the ratio as a reported estimate, not a current Mississippi-specific count.

The same article says the top 1% of agents, including high-production teams, do 18% of deals. It also reports an average of 26 transactions per year for the top 20% of agents, compared with 3.5 for the remaining 80%. (South Florida Agent Magazine) An iBuyer.com article also repeats the 26-versus-3.5 comparison, attributing it to Chicago Agent Magazine. (iBuyer.com) That gap shows production can vary widely, even if the overall split is not exactly 80/20.

Earlier MLS data reported by Relitix points in a similar direction, but measures a different period. For production from May 2018 through April 2019, Relitix reported that 29.02% of agents closed 80% of volume and 30.27% closed 80% of transaction sides. (Relitix) Rob Keefe, Relitix’s founder and CEO, summarized the result: “The actual ratio for real estate agents is almost exactly 75/25.” (Relitix)

Keefe also wrote, “If you are curious about that 80% number, it turns out that the top 30% of the agents produce 80% of the results.” (Relitix) The article says its MLS figures cover 120,000 agents who had at least one closing during the stated period. (Relitix) That is useful context, but it is not a current count for Mississippi.

Why studies give different answers

Studies can start with different pools of agents and count different things. HousingWire’s coverage of a Consumer Federation of America study says 70% of agents in the areas studied sold five or fewer homes in the past year, and 49% sold one or none. The study’s median was two sales per year. (HousingWire)

The same HousingWire article contrasts that result with a median of 12 sales per year in the National Association of Realtors’ annual member survey. It describes the CFA study as a sample of 2,000 agents, with 100 randomly selected from each firm in each area. (HousingWire) The different samples help explain why the reported medians differ. Neither number, by itself, tells you what an agent in your part of Mississippi has handled recently.

The measures also differ. Relitix reports the share of agents associated with 80% of volume or transaction sides. The 2025 article describes a 65/20 split in transactions. The CFA study describes how many homes agents sold. Those are related questions, but they are not interchangeable. South Florida Agent Magazine concludes, “The bottom line is that while the 80/20 rule about agent productivity is close, it’s not ironclad.” (South Florida Agent Magazine)

What the rule means when you hire an agent

High transaction volume can be a useful signal. It may mean an agent has handled the steps you will encounter, from preparing an offer or listing to navigating inspections, deadlines, and negotiations. But volume is not the same as fit. A high-producing agent may work with a team, focus on a different price range, or manage many clients at once. Ask how the work will actually be handled in your transaction.

Ask about recent closed transactions in your market and price range. Find out whether those were buyer-side or seller-side transactions, what role the agent personally played, and who will be your day-to-day contact. Ask how the agent plans to communicate and what happens if a deadline or problem comes up. Specific answers tell you more than a national average.

Do not treat a lower sales count as an automatic disqualifier. An agent may be newer, work part time, choose to handle fewer clients, or have relevant experience that does not show up in one annual total. Ask about the context, then decide whether the agent’s availability and experience match your needs. A large number does not guarantee that the agent will give your transaction focused attention, either.

How agents can use the principle

For an agent, the Pareto principle can be a prompt to look at where business comes from and which work serves clients. InvestNext gives examples of how a firm might find that a small share of its agents closes most of its deals. Those examples illustrate the principle; they are not a universal benchmark for every brokerage. (InvestNext)

Useful questions include: Which client sources lead to lasting relationships? Which activities help clients make sound decisions? Where do communication delays or preventable errors occur? A production count alone cannot answer those questions. The aim is not simply to do more transactions. It is to build a repeatable process and stay responsive to the people who have trusted you with a major decision.

That is why I would not use an 80/20 slogan as a shortcut for judging an individual agent. It describes a possible pattern across a group. It does not tell you whether the person in front of you listens, explains tradeoffs clearly, follows through, or understands the local transaction process.

How I handle it at HomesRX

When I talk with buyers and sellers, I want to get past the headline number. I ask what kind of property or transaction they have in mind, what questions they need answered, and what they expect from communication. Then we can look at relevant experience and the plan for handling the work.

I also tell people to ask who will actually be available to them. Production can be a useful starting point, but it does not replace a direct conversation about fit, workload, and follow-through. I want clients to understand the process before they commit, and to feel comfortable asking for a clear answer when something is not clear.

Frequently asked questions

Does the 80/20 rule mean exactly 20% of agents close 80% of sales?

No. A 2025 report describes the split as closer to 65/20, while Relitix’s earlier MLS analysis found that about 29% of agents closed 80% of volume during its measured period. The result depends on the data and what is counted. (South Florida Agent Magazine; Relitix)

Should I hire only a high-volume real estate agent?

No. Volume is worth asking about, but it does not tell you how much attention you will receive or whether the agent’s experience matches your transaction. Ask about recent work in your market and price range, the agent’s role, and who will be your main contact.

What should I ask an agent before hiring them?

Ask how many similar transactions they have handled recently, how they will communicate, and who will manage the day-to-day details. Ask for specific examples of how they handle deadlines and unexpected issues, then decide whether the answers fit your needs.

The takeaway

Use the 80/20 rule as a reason to ask better questions, not as a hiring formula. Compare an agent’s recent, relevant experience with the service and communication you need, and make sure you know who will handle your transaction.

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Dr. Zakk Varughese is the broker-owner of HomesRX in Brandon, Mississippi, a REALTIST® and Founder and Chairman of the Board of the Gulf Coast Association of REALTISTS®. Questions about buying or selling in Central Mississippi or on the Gulf Coast: (601) 667-8414 or SoldByZakk.com.

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