The 990 Company Offers Home Sellers a Way to Save Their Money
The 990 company is a real estate listing company. It offers real estate agents an opportunity to get more listings. By paying a fee of just $200 per month, agents get to reserve a ZIP code. The ZIP code gives them exclusive rights to the referrals business arising from the company’s advertising and their own marketing of the 990 opportunity in their ZIP code. Only one agent can reserve a ZIP code at a time. This means that all home sellers in the same ZIP code will only be referred to the agent.
The program attracts home sellers by offering them an option to sell their homes at a commission of just $990. However, it doesn’t mean that agents who sign up with the 990 program become discount agents. The $990 commission is only given to home sellers who are able to bring in buyers who are not working with real estate agents.
First, the agent will advertise the message “Sell your home with an experienced full service agent and a commission as low as $990,” and attach their name and phone number. Interested home sellers, excited about the $990 commission, will the call the agent. The agent will then offer the $990 sells homes opportunity alongside their full commission plan. The home owner will be allowed to host an open house. If they manage to get an interested buyer with no real estate agent, they get to enjoy the $990 commission.
This program is a win-win for the agent in many ways. Since most home buyers have real estate agents, most of the homes will be sold under the normal full commission anyway. Even when the homes do sell under the $990 commission, the home buyers that the agent gets through the home sellers are able to buy or sell their homes through that agent, therefore earning the agent a full commission.
The sellers will also be so appreciative, and may buy their next home through the same agent. They will also refer business to the agent for years. Whether the agents sell at $990 or not, they are able to acquire new listings that they never would have gotten. Those who don’t understand this model will assume that the agent is offering a discount.
Agents who reserve a ZIP code are equipped with promotional material, video training and many other resources. They, essentially, get a license to operate under the trademarked 990 program. If a consumer visits the 990 website and types their ZIP code, only the name of the agent who has reserved the ZIP code appears. The agreement only lasts for a month. If the agent decides to leave the program, they are free to cancel and not to make any other payment.