Sept. 5, 2008
Houston Chronicle
A flat fee to help sell a house
Sandra Bretting

Seven years ago, while vacationing in New Mexico, Greg and Shannon Stubblefield noticed a sign for Assist-2-Sell, a real estate company that offers services to home buyers and sellers for a flat fee, versus a percentage as normally charged by real estate agents.

When the Houston couple returned the next summer, that lone sign had blossomed into a hundred.

"We were in the discount mortgage business, and we realized this was basically the same concept, but for real estate," Greg Stubblefield said.

The couple contacted the corporate office of Assist-2-Sell and by the end of the year owned franchise No. 615, now in west Houston. Both also obtained their real estate licenses, with Shannon Stubblefield adding a brokerage license along the way.

"At that time, no one was dealing in discount real estate services in this area," Shannon Stubblefield said.

Savings for consumers

Today many people are finding properties themselves without the help of real estate agents, she said.

"With the computer they can look up which houses are for sale, then MapQuest the directions. Real estate is an industry that's benefited tremendously from technology, but hasn't passed those savings on to the consumer," Shannon Stubblefield said.

According to Betsy Gelb, a professor of marketing and entrepreneurship at the Bauer College of Business at the University of Houston, people offering a discounted service shouldn't necessarily compete head to head with full-service companies but should market to people who place savings above other features.

"That's key for anyone offering a discount service, no matter what the industry," Gelb said.

She added that knowing which market will appreciate discounted services is critical.

"You need to divide your market segment into groups and then go after the group that values savings the most," Gelb said.

'The best interest'

According to Greg Stubblefield, his franchise offers much of the same services as traditional real estate brokers but relies on volume to offset the lower fee structure.

The Stubblefields' franchise sold 46 properties its first year in business. Last year, it sold 126 homes, primarily in the Katy area and Deer Park, through a second office established there.

For a flat fee that begins at $2,995, home sellers receive a competitive market analysis, posting with the MLS listing service, if that's what they choose, an agent who will show the home and arrange for open houses, and other services.

In addition to what discount brokers offer, full-service agents typically negotiate offers, help explain complex paperwork and produce more marketing materials.

Properties the Stubblefields' Assist-2-Sell have sold range from a $60,000 home in Katy to a $1.3 million mansion in Piney Point, owned by a physician.

"There are a lot of different kinds of business models out there in real estate," said Mike Leviton, chairman of the Houston Association of Realtors. "As long as they represent the best interest of sellers - or buyers - we don't have a problem with any of it."

Shannon Stubblefield says they do represent the best interest of sellers and buyers but adds this caveat:

"Look, we're not encouraging people to jump into a pool where they can't swim. This is for people who know what they want, and they're not afraid of using something new."