Tesco's - estate agents of the future?

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L

Lorna

  • #4
    Tesco will only list private sale homes as they won't want to get involved with Estate Agents Act. However they have been trying to include property portals that list estate agents properties (talk about hedging your bets).

    Their plans have so far been rebuked though...

    Tesco's plans to sell properties via its stores could be facing some difficulties.


    It's reported that Tesco has been seeking help from existing estate agents' internet sites to use their listings to help drive traffic to the stores homes for sale - prompting the agents to refuse.

    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."

    Additionally, Ed Williams, group managing director of Rightmove, was more threatening: "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."
    (housefund.co.uk)
     
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    Astaroth

    Free Member
    Aug 24, 2005
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  • #7
    Unfortunately the "fighting talk" of the other companies is likely to do nothing more than make Tesco more determined to do it.

    They ultimately have the money to throw behind any new proposition and are likely to quickly have any partners over a barrel very quickly because their brand simply does sell well and with their clubcard data they can do exceptionally well targetted marketing.
     
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    P

    PintoPotts

  • #9
    I don't think their concept is right for this...looks like they are trying to set up an Autotrader type operation for houses.

    Granted it is very strong brand, but people like to have someone to talk to who can chase things up, offer advice etc' - and this just looks like a cheap alternative to going to an Estate Agents.

    Selling your house privately very rarely works and I can't see Tesco changing that.

    OK, they could have something in-store, but most people search online anyway. Many of their stores are also starting to look tired and in need of a spruce up as well, which would be a further turn off.

    I struggle to but a bag of veg at Tesco, don't think I could manage a house.

    The Tesco backlash has already begun, long may it continue!
     
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    C

    Clementine

  • #10
    Tesco are becoming (already are?) a major force in our lives and I for one don't like it.

    Gone are the days of the Greengrocer being an expert on the freshest fruit and veg, and the Butcher cutting a joint of meat to your liking and giving you advice. If this sort of thing continues it will be the end of the estate agent doing their best to sell your house.

    Do you want a young spotty teenager coming round with in a blue ill-fitting overall to take a brief and pictures of your house and expect to get the best price? I don't think so. (Joking).

    I am slightly hypocritical, however, as my wife still shops at Tesco (or Asda) each week - but this is more down to the fact that they have forced the local independent shops (Butchers, Greengrocers, Fishmongers, etc) to close because of the impact on their sales.

    Tescos may think they are giving us more choice but in the long run they are actually taking them away. (Omg I am on about choices again....).

    Hopefully estate agents (not the best people in the world I admit) will have the power to stand up to Tesco and stop this trend.

    Clem.
     
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  • #11
    One of my mates, a successful retailer has been taking them to the competition commission over their convenience store policy.

    I cant help but feel it is "bite your kneecaps" and king canute.

    High streets will become even more derelict.
     
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    Astaroth

    Free Member
    Aug 24, 2005
    3,985
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  • #12
    There is a growing number of people selling their homes privately from both the data we have seen and the people asking for websites to help people do this.

    Are tesco able to change the market view? Whilst you say not it wasnt that many years ago when people said the same thing about going to a supermarket rather than a butcher and this certainly has changed to the extent that it is hard to even find a decent butchers these days even if you want to go to one.

    Time will tell if this is just another sideline for them or if they are intending to try and make it more mainstream. I would suspect it is the former but the main risk is for the aggregators who try and stand in their way more than for the high street estate agents who will always have a customer base.
     
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  • #13
    Well I can't think of any enterprise that Tesco has entered where they have failed?

    As the biggest brand name in the uk ,and having an adoring customer base.

    They will af course triumph over the competition,probably on price,as they have done for many years.


    Earl
     
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    P

    PintoPotts

  • #15
    I still don't think they should be dipping their toe into this market, they are very succesful but they have had failures and this is likely to be another one...

    For example their attempt to take on Argos has fallen flat on its face.

    I also think the tide is turning against these huge organisations who have limited our purchasing choice by giving us exactly that.

    I know loads of people who only use superstores for basics and buy food from farm shops and independent retailers, for reasons of both quality and principle.
     
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    PintoPotts

  • #18
    I take your point Astaroth, these places (Tesco, Asda, Sainsbury) frustrate the hell out of me, they really have limited consumer choice and had a terrible effect on the high street, in particular small traders...

    A friend of mine has run a newsagent for nearly 40 years which his father owned before him, he has managed to survive despite two superstores springing up within a mile and a half of his shop, I believe he has only survived because of a loyal long-standing customer base, problem is that as these loyal customers are getting older and dying off there is a lack of new people to replace them.

    Re: Argos - Tesco brought out a book last year that looked identical to the Argos book, you could order in-store, by phone, online etc'.

    It never took off and I understand they have scaled the project right down.
     
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    D

    Dawg

  • #21
    Richard you are a cruel man.
    The City is now international. The Army is tiny. The Priesthood almost gone. The wine trade taken over by colonials. No empire to go to.
    If Estate agents get brought into line what on earth will thick public school boys do?
     
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    directmarketingadvice

    directmarketingadvice

    Free Member
    Aug 2, 2005
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  • #24
    I think it is the kick up the arse that estate agents need now perhaps theEA's will up their customer service and lower their prices. They badly need to do both.
    Click to expand...

    Good point.

    I think the typical Estate Agent is doomed.

    They do a third rate job and charge a fortune. Which means they're wide open to attack from the first organisation that gets its act together and offers a credible alternative.

    Steve
     
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  • #30
    Warren Bright, chief executive of propertyfinder.com, said "We see this (Tesco's venture) as a clear attempt to undermine estate agent, who play a valuable role in the property transaction process."

    To estate agents :D

    winge winge winge I am going to enjoy this one.I think I might give them a leg up as I have N04 on google for "kent tesco"

    Earl
     
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    PintoPotts

  • #31
    Although I think Tesco are stupid getting into the shark invested waters of estate agency...(and I hope they lose a leg or two)

    The comment from the propertyfinder guy is ridiculous, Tesco are not setting out to undermine anyone, they don't care, they are simply out to make money, something they are very good at.
     
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    L

    Lorna

  • #32
    Tesco's home selling 'service' will merely act as a loss leader to get more buisness for their more lucrative businesses - financial services. Once you sign up expect to be bombarded with offers of mortgages, home insurance etc.

    If they are going to 'arrange viewings and take telephone enquiries' they should be classed as an estate agent, not a private sale portal. I suppose they will wangle out of it though.
     
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    voucha

    Free Member
    Apr 10, 2007
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  • #33
    Hi guys,

    I have just read this thread and all the comments that you have provided regarding estate agents, bad service etc... This kind of leads on to a project that im wishing to start. Im looking at two options:

    The first is a estate agents and letting company that is internet based with low rates and high customer service.

    The second is the easier option of creating a private sale and letting website, much like the tesco one mentioned in this thread. will a subscription rate.

    I have been looking at what path to take in order to take advantage of the current house sale trends. What i would like from you guys is some feedback of both routes and advantages and disadvantages you can see for both.?
     
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    L

    Lorna

  • #34
    To start with, if you are an online estate agent you will have to comply with the Estate Agent Act 1979.

    If you want to start an online private selling site you will have to compete in an extremely tough environment, take months (if not years) of preparation, spend £000's on a professional set-up, build the brand and credibility of the site, have a network of contacts that you can outsource, be adaptable, have a sound understanding of the property industry, take the knocks and criticism and eventually you might make a couple of quid. Once you've found the magic ingredient let me know.

    The only reason Tesco have jumped in is because they think they won't have to comply with the EA Act and that private sales are a growing sector. They've also got the clout to be aggressive, non-profit making for a while and can rely on an extensive support system. As much as i dislike Tesco they have at least raised awareness of private selling.
     
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    mountie

    Free Member
    Jul 4, 2007
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  • #35
    Voucha
    No offence but its this type of attitude that gives the property industry a bad name. Anyone who thinks that they can open an office, plug in a phone, switch on the laptop and start trading is seriously deluded.

    Unless you have experience, bags of cash, skin like a rhino and stamina by the shedload then don't bother.
     
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  • #37
    Lorna said:
    To start with, if you are an online estate agent you will have to comply with the Estate Agent Act 1979.

    If you want to start an online private selling site you will have to compete in an extremely tough environment, take months (if not years) of preparation, spend £000's on a professional set-up, build the brand and credibility of the site, have a network of contacts that you can outsource, be adaptable, have a sound understanding of the property industry, take the knocks and criticism and eventually you might make a couple of quid. Once you've found the magic ingredient let me know.

    .
    Click to expand...

    Strange took me a couple of weeks to become one of the top estate agent sites in kent,I must just be very lucky:rolleyes:

    Earl
     
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    E

    Encantador

  • #38
    SteveGibson said:
    Good point.

    I think the typical Estate Agent is doomed.

    They do a third rate job and charge a fortune. Which means they're wide open to attack from the first organisation that gets its act together and offers a credible alternative.

    Steve
    Click to expand...

    This subject has been discussed on various business forums for years. No one has ever come up with a reason why they are still in business, but they are.

    Fixed fee property shops came and went, at least where I am. Why?
    They had a shop, they gave out details, they advertised in the same papers, they did the same stuff in the background and charged £300 instead of 2%.
    People kept going and paying 2%. Why?

    I am selling my house for £200,000, my friend is selling his for £250,000.
    He has to pay them more for doing exactly the same as they are doing for me. Why?

    Does an EA have to be in the town centre??
    How many people never (or rarely) actually visit their own town centre?
    As the majority of people in the UK use a car, wouldn`t an out of town office with free parking outside the door be better all round??

    The first person that comes up with a viable alternative, starts in their own town and expands from there will do very well.

    I was once selling a house as was my next door neighbour, they were with an EA first, so I decided to put my own sign up thinking that as the houses were identical, anyone visiting them would either knock on my door or take the phone number off the board and ring me. You guessed it, not one did. Why??

    Interesting subject.
     
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  • #39
    Encantador said:
    I was once selling a house as was my next door neighbour, they were with an EA first, so I decided to put my own sign up thinking that as the houses were identical, anyone visiting them would either knock on my door or take the phone number off the board and ring me. You guessed it, not one did. Why??

    Interesting subject.
    Click to expand...

    Because the estate agent serves the function of being piggy in th middle.

    both sides negotiate through him,and in theory he lies to both parties in equal measure.

    the general public have an aversion to dealing directly with each other , because were such a slippery lot .and hate direct conflict,as in negotiating price :)

    Earl
     
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    E

    Encantador

  • #40
    sirearl said:
    Because the estate agent serves the function of being piggy in th middle.

    both sides negotiate through him,and in theory he lies to both parties in equal measure.

    the general public have an aversion to dealing directly with each other , because were such a slippery lot .and hate direct conflict,as in negotiating price :)

    Earl
    Click to expand...

    So why didn`t fixed fee property shops take off??

    I would rather be lied to by someone costing me £300 than £3000, or does paying more get you a bettr liar?
     
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