Selling property privately online has always been a controversial way to sell a home as it challenges the role of estate agents. Private sellers typically stand to save thousands in commission fees. The news that supermarket giant Tesco is starting its own house selling service is another challenge to the role of estate agents.
Tesco intends to launch its house selling service at £199 which includes advertising on their website and a for sale sign. The fee will dramatically undercut estate agents, who charge typically £3,500 for an average £200,000 house sale.
In a bid to reduce access to the major UK property websites most portals have refused listings from those selling privately online. Property websites at Rightmove, Propertyfinder.com, and Findaproperty all refuse listings from those selling privately.
Homesgofast.com CEO Nicholas Marr ‘We sell property on behalf of both estate agents and private sellers and distribute sellers adverts to a number of property websites. We are no longer allowed to promote our private sellers adverts on some of the UK’s most popular websites’
Tesco appears to have been met by a brick wall as it planned to drive traffic to its website by using the portals listings to attract buyers .
Ed Williams, group managing director of Rightmove, said: “We’re not playing ball. This is a Trojan horse and we have declined to participate. Our commitment not to take private advertisers is longstanding and on the record.
“If Tesco scrape our listings without our permission, we will take the appropriate legal action.”
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.
“They wanted to position their private sellers at the top of their listings, followed by our listings. They won’t be getting feed from us.”
Ian Springett, chief executive if Primelocation, added: “We were in fact approached by Tesco a few months ago but, for a variety of reasons, took a decision not to become involved.
“Naturally, the direct vendor element of the proposed new portal was a problem for Primelocation since our site features only properties supplied to us by member estate agents.”
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.
“For sale” boards for outside the home will be provided and the property will stay on the site until it is sold — or taken off by the seller. The site offers details about local schools and amenities — and gives pin-sharp aerial views of locations.
Rosalind Renshaw, editor of The Negotiator, said: “Established estate agents are hopping up and down over this and their livelihood is under threat.
“What estate agents are very good at is negotiating the best price for their vendor and are very good at nursing through deals where complicated chains are involved. The question is can Tesco do either of those things.”
