By SANDRA BRETTING For The Chronicle
Sept. 5, 2008, 11:40PM
Greg and Shannon Stubblefield say they were among the first in the Houston area to offer their kind of discount real estate services.
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.
