Ali Hussain
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Tesco, the UK's biggest supermarket chain, is increasing pressure on estate agents by entering into the lucrative British property market.
Sellers will be able to list their homes on a Tesco website for a one-off fee of about £200 – dramatically undercutting estate agents who charge £3,500 for an average £200,000 house.
People using the property sales service will get a Tesco-branded "for sale" sign to put up outside their home. Currently only seven per cent of houses in Britain are sold privately. Two online estate agents have already uploaded 300,000 properties on to the Tesco system.
The service includes online advertising and the supermarket says it will enable sellers to effectively become their own estate agent.
They will be able to upload up to 20 pictures of their property and arrange viewing dates with buyers directly. The site also offers details about local schools and amenities – and gives pin-sharp aerial views of locations.
The supermarket has linked up with various experts giving advice on insurance, conveyancing and other legal matters.
The site’s future success however will depend on building up further relationships with firms that already advertise properties giving the supermarket access to other online search portals. Tesco is understood to be in talks with Primelocation and Findaproperty, although both firms have denied any intention to work with the supermarket giant.
The supermarket, which announced record £2.55billion profits this year, insists its site is different to a property service run by rivals Asda which launched a property search service last year.
Mark Davis, of www.Tescopropertymarket.com, said: “This is going to revolutionise the property market. If people still want to use estate agents then they can, but we are going to give them all the tools to do it themselves.”
He said sellers will need only internet access, a tape measure and a digital camera.
Consumers will also be able to value their home by using links showing similar prices in their areas.
Mr Davis added: “There is no risk of gazumping because the system does not allow communications once a property is sold.”
Laura Wade-Gery, CEO Tesco.com, said: “Tesco Property Market offers a 'one stop shop' for everything related to moving house, and we hope this will make life a little simpler and save money for many home movers.”
Asda was the first supermarket to move into the property market and began trials last year in 21 of its northern stores offering a one per cent fixed-fee estate-agency scheme.
Click here to read our guide on how to sell your home without an estate agent.
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I think some of the people writing in must be estate agents . Estate agents do nothing to justify charging up tp 2%, taking pics phoning a vendor call that a job. Just for the record the solicitors do all the legal work which each vendor has to pay for. The princilple behind tesco idea is a good one. I've been working on exactly the same idea for a year with friends because i could not understand why anybody would want to give up their hard earned money for minimal effort. The real shame here is the fact that tesco can now potentially get the monopoly on the housing market. I hate what they have done to every kind of small busiiness, they have now killed my idea dead before it had a chance. The government needs to do something, but i think anybody with half a brains knows they never will because of the money they bring in. Its a shame really, is all that will happen is people like me and other potential entrepreneurs won't ever be able to have a chance.. I'm off to drink a beer...
matt bolton, rayleigh, essex
To start with all the listing's Tesco has put on are properties that are already being marketed by Estate agents. I phoned up the number on the site and took me directly to the estate agents so at the moment the only person seems to be gaining are the agents because of the extra exposure!
"revolutionise the market place" I hardly think not ! by a home-owner doing all the mesaurements and legal side themselfs they are just letting them self open for a liable case when they either get the measurements/details wrong or bend the truth trying to get a bit more out. I certainly as a current purchaser trust the vendors details as of course they are going to be biased
At the end of the day it makes sense to pick a decent agent, not one who promises the world for a low fee but one who will do all the running around, making sure the sale is legal and at the end of the day can get you a better price! and a lot less hassel, Most agents these days are all under one roof anyways !
Nick, biggin hill,
Tesco's hasn't exactly got the best record of trading ethically - why do I think this will be no exception? I agree with Pete in that I would never want legal services provided by them!
Katrine Carstens, Aarhus, Denmark
I think that it is much better to use a local estate agent.
Negotiate the price before you agree a commission and then you can incorporate it into the price of the property.
I have used internet sites to sell houses fairly recently and had only one 'time wasting' hit.
I had far more interest putting it with the local estate agent.
The internet listing was a waste of time and money.
If people are looking to buy in a particular area, they are more likely to visit a local estate agent than look on Tesco's website.
John, Newport, Wales
I have moved many times in my lifetime and used different estate agents.. all promising me good service etc... Not true!!! In the end I have been the one to show people round and point out the good points in buying my home.. I have been the one to keep ringing my solicitor to sort things out.. Estate Agents have said they will ring me back etc.. and very rarely do..!
On the other side of the coin.. when finding a property.. I have found them just as useless! Using their website and sending them emails re interested properties etc.. some never even seem to read their emails and reply.
I will support Tesco and maybe this will make estate agents give good customer service and support for the high fees they charge.
Sue Le-Marechal , Chichester , England
Having sold my last 3 houses myself through the internet i welcome tesco coming on the scene to deive estate agents out.The person who put support your local estate agent can only work for an estate agents themselves because no one in their right mind will think estate agents are worth what they charge
k waldman, southampton,
Fantastic- good old Tesco, I have always felt that estate agents were replacable- they are not professionals although they expect professional fees.
Hopefully this will give a lot of these property spivs a whack in the P&L.
Phil Mooney, west malling, kent
Yor forget the agent works (or should be) for the vendor. You should use an agent and the extra they can get for your house should cover their commission...195,000 yourself versus 200,000 with an agent... (less fee 1.5% = 3k) = 2k better off in your pocket and you've not had do the leg work.
Alastair Grant, London, London
Bread, milk, tvs, books, sofas, diets, contact lenses, photos, flowers, cds, finance, wine, music downloads and now properties?
'Jack of all trades, master of none' is a phrase that springs to mind. Is there no end to the Tesco empire?
John, Guildford,
Tesco is taking over the world...... Tesco at every street corner and now also on the property boards in my actual street....... I am about to sell my property, but I would rather support a local estate agent and a local shop....
I thought you have to be registered as an estate agent to be able to put up a 'for sale' board? Is Tesco using a loophole??
Petra, London, UK
Oh Look, a Solicitor squalling already
At last we are getting rid of these rip-off estate agents, financial and legal services
Where do I send my £200 cheque Tesco's, I'll use this service now, as will many thousands more
Good luck.
Steve, Surbiton,
Well I´ve just checked the TESCO site for properties in London N1- and the answer comes back :
"Apologies
An error has occurred within the website while attempting to fulfil your request."
NOT very impressive, TESCO.
Alison, Rio de Janeiro,
Tesco needs estate agents listings from sites like Primelocation and Rightmove to make it's own site a success, otherwise the choice of property will be too limited to sustain customer usage of the site.
This is unlikely to happen because to help Tesco, Primelocation would be biting the hand that feeds it; estate agents. Customers want maximum choice when searching for a property and if Tesco only has a handful of properties that it is listing then people will not use it and in turn those paying their £200 to Tesco will struggle to generate exposure for their property.
Dan, Epsom, UK
Roll on,
Tesco , providing estate agency, providing the mortgage, providing the legal services...
One provider, no conflicts...
Then when you want to take action against them for a property law problem....
Where will you find the expertise...
Errrm Tesco? I think not...
My congratulations to Clementi, one more nail in the coffin of liberty, the freedom of the individual and the ability to find truly independent legal advice.
Pete Balchin, Solicitor, Bristol, uk
I am not a Tesco fan but WELL DONE to Tesco. I have long wondered why I get a better quality of service buying my weekly groceries, costing 100 quid, then when buying a 200,000 house. Not that I could afford such a house! As Estate Agents are paid by commission, it is in their interests to bid the market up. The Tesco approach might provide a better level of service to both the buyer and the seller, and not force such an upward pressure on house prices.
Tesco staff appear to be trained in their job yet anyone, with any sort of dubious background, can start up an Estate Agents business. I only hope Tesco are well prepared for the media and political storm the various Estate Agents' bodies will whip up.
If Tesco manages this, I'll even shop there more often!
NickT, Aldershot, Hampshire, England
what about the property misdiscription act? surely tescos will now be classed as estate agents and therefore liable for any breaches. and with owners doing their own details there will be plenty. will tescos be happy paying £5,000 each time?
tony arif, benfleet, england