The Internet has materialized as the missing ingredient in the success of many businesses, not the least of which are enterprises that parallel traditional real estate services.

Before the dot-com revolution, information distribution -- reaching the largest number of qualified buyers -- was the greatest advantage of listing through the MLS or Multiple Listing Service® and the greatest barrier to selling privately. The Internet, originally welcomed as 'the information highway,' leveled this real estate playing field.

The Internet has bolstered the pre-existing MLS® system and opened it to consumers, where previously it was the exclusive domain of licensed members of real estate boards across Canada. The Web has also enabled new systems for distributing real estate information outside organized real estate.

Property owners intent on taking the For Sale By Owner or FSBO (pronounced "fizz-bow") route to the sale of their real estate now have choices. In the nation's capital, Grape Vine Home Marketing Consultants has carved a niche for itself by offering online marketing support to homeowners intent on personally selling their home.

"Prior to having the website, the only way that potential buyers could look at properties was through the MLS®," said Lorraine Brownrigg, founder and owner of Ottawa-based Grape Vine Home Marketing. "[Potential buyers] could look at private sales, but there was no central area for all of them. We have a large number of them; I'm not saying have all of them."

The attraction for consumers is successfully selling their property without "paying high real estate commissions." This in turn makes the cost of Grape Vine services important to client satisfaction. Rates have not increased for a number of years because of a number of cost-effective measures:

• This web-based venture does not require public offices since essentially "business takes place in the client's home"

• This online network is backed by a lean home-based organization where the office is separate from the residence, and questions and concerns have been anticipated in the marketing manual provided.

• The website is an "always on" information source.

• Sign installation, and photography are contracted out and are separately charged services. Professional signage is a big draw, but most sellers provide their own photographs. Property owners decide whether to include print advertising and take care of costs themselves.

"If you list in Ottawa, the standard real estate commission is 5 per cent and the Seller Agent gets 2.5 per cent and the Buyer Agent 2.5 per cent," explained Brownrigg. "It is common for Agents to call and say 'Do you cooperate?' which means 2.5 per cent, and some [sellers] cooperate and some do not. On a C$250,000 sale, sellers will save over C$6,000 if they cooperate and over C$12,000 if they do not ... . Everybody uses a different marketing price. Some price at MLS®, some discount and some knock the commission off if they want to sell quickly. We do not get involved in this as we are not agents and cannot be involved. If something outside our domain comes up, we suggest they call their lawyer."

Do some real estate transactions fail to close? Brownrigg says 'yes,' but emphasizes that these failures are not more prevalent since lawyers handle the paperwork and legal issues.

"The only problem is that negotiating is not always smooth," said Brownrigg. "I hear sometimes, 'It is tough to negotiate,' and some call and say 'I am waiting for the other shoe to drop, it was so easy.' Everybody is different."

The Grape Vine process begins with online registration. Marketing service packages range from website only at C$175 to a real estate broker-assisted premium package for a flat fee of C$695.

"[Sellers] prepare their house a head of time and, with all the TV shows out there, I find that homeowners who are selling privately have done their research and they are ready when they come to us," said Brownrigg, comparing their services to those of organized real estate. "[Sellers] have to prepare their write-up online and that is something different. They show the home themselves and take phone calls. If there are open houses, they do those themselves. They negotiate directly with the buyer. In our process, they take the paperwork to the buyer's lawyer and the [seller's] lawyer reviews it. This is the best part time job you can have -- if you sell completely privately, that's 5 per cent and if you cooperate, it is 2.5 per cent."

Brownrigg reports that, over the past few months, the Grape Vine site has received more than 200,000 hits per month and that in 2006, Grape Vine serviced over 1300 home marketing clients who had about a 68 per cent success rate. By comparison, the Ottawa Real Estate Board reported 1,651 home sales in June and 1,855 in May 2007. Not all MLS® listed properties sell either.

"We do not advertise a 100 per cent rate," said Brownrigg, adding that owners who do not sell privately often list with a real estate broker. "We usually advertise 70 per cent as that is for the whole year. If you sell in winter or mid summer or out of town, the rate is lower, so that is all encompassing ... . The market starts usually about March, but it started early this year and it has not slowed down, so I've had no time to do stats except that this year is better than '06."

Grape Vine began as a franchise based in southern Ontario. Brownrigg bought the Ottawa-Carleton territory with a partner.

"He had been a Realtor for a few months and found that it was not what he was looking for," said Brownrigg. "Then we saw this advertisement in the newspapers in 1990, and purchased it and quicklyopened in 1990. I bought him out 10 years ago. It was a niche that wasn't being filled and it looked like a nice way to be in the real estate market if you didn't want to be an agent. Obviously, it is a business but you are helping people save money. It is a win-win for people."

The business began as a part-time venture and built up very slowly in the pre-Internet days. A few years ago, Brownrigg bought out the original franchisor since her's was the only surviving office. What lies ahead for Grape Vine as real estate markets shift?

"We grew so fast when the market turned and we have been working full tilt for 5 or 6 years," said this entrepreneur who began her business at a time when interest rates were 13 per cent and real estate markets had stalled. "People look at it and say, 'Selling privately is good when the market is good,' but I don't think that is true. The way I look at it is in a bad market you can price your house more competitively since you are not paying commissions."

Published: July 17, 2007

Use of this article without permission is a violation of federal copyright laws.

Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.