Tesco tries its hand at estate agency
The estate agency industry has been under threat of a shake up from the internet for a while now and things are looking bleaker for them as Tesco moves into the market. However, the supermarket may have difficulties with its offering since it wants to list property from estate agents as well as private sales.
Tesco’s new property sites lists private sales followed by property for sale through estate agents. In exchange for GBP 199 (a lot less that the percentage of sale value charged by estate agents) Tesco is offering sellers an advert with up to 20 images. This is linked to virtual earth images and local information such as OFSTED and local government sites. Also included in the price is a pdf of the property details, a for sale sign and an area for managing the sale and communicating with the buyer.
The Telegraph reports that Tesco has approached online sites advertising property for sale from estate agents and has not had much success with finding partners. Warren Bright, chief executive of Propertyfinder, said: “We were approached some months ago but we have chosen not to participate, as their proposition is not in the interests of the estate agent, who is our customer.”
The site currently lists fish4homes and SmartNewHomes as search partners.
However, another industry which should be looking at its charges is lawyers offering conveyancing. While online services are already undercutting the average prices charged by traditional firms, the weight and trust of Tesco’s name behind MyHomeMove (with which it’s partnered) could find more people trusting online legal practices.
