James Rossiter
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A key estate agency partner of Tesco's online estate home-selling site, launched yesterday, is pulling out of its contract Times Online has learnt.
Joe Slavin, chief executive of fish4homes, the biggest portal signed up to the site told Times Online that he had "terminated" his contract with tescopropertymarket.com, a move that will result in Tesco losing out on tens of thousands of referrals from about 7,000 estate agency branches around the country.
Spicerhaart, one of London and the South East's largest group of agents and a member of the fish4homes network, has already pulled all online advertising of its housing stock from tescopropertymarket, Mr Slavin said, over concerns that that Tesco site would conflict with its business.
Tesco started on Monday offering home sellers to post details of their property directly onto its website for a flat fee of £199, undercutting estate agents who can charge up to 3 per cent of the value of the property.
However, the site needed a portfolio of homes for sale from day one to attract traffic, hence it signed up fish4homes as a partner.
A fish4homes spokeswoman said it had been "misled" by the nature of Tesco's strategy when it signed up a partnering agreement with tescopropertymarket.co. It had assumed that only its homes would go on the Tesco site.
Mr Slavin said: "We thought it was going to be just another portal link. It was not clear [when we signed up] that they were going to have their own home sellers. It was supposed to be a classic white label partnership. Our agents win by getting traffic, they [Tesco] win by knowing who is in the market."
Tesco would have gained, Mr Slavin said, by knowing who was due to move thus affording extra opportunities to sell bulky goods such as furniture and fridges.
Tesco said today: "We expect our partners will benefit from increased traffic to our site."
The only other estate agency portal signed up with Tesco is Smartnewhomes.com.
So far all the properties listed on the Tesco website come from fish4homes but Mr Slavin said he had now invoked a 90 day break clause after which all the listings from his member firms will be removed from the Tesco site.
Individual agencies can however opt out of the Tesco site sooner if they want, Mr Slavin added. About a dozen agencies, Mr Slavin said, "of all shapes and sizes do not want to be part of it". Spicerhaart's brands include Spicer McColl, Felicity j Lord, Darlows and haart.
The fish4homes website is owned by Newsquest Media Group, Trinity Mirror and the Guardian Media Group Regional Newspapers.
Propertyfinder and Rightmove, the two big rivals to fish4homes had refused to partner with Tesco even before the website was launched.
Mark Davis of Tescopropertymarket.com had said that his website "was going to revolutionise the property market."
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."
Andy Etches of BrightSale, a newly launched housing website said "The pure 'sell it yourself' online model as proposed by Tesco is fatally flawed. Selling a home is a very big deal, and the feedback we have had over the past six months is that people do not feel confident in going it completely alone."
House hunters looking for properties at Tescopropertymarket.com can still find three homes advertised on its site priced at over £7 million all on the Bishops Avenue in north London.
Tesco claims that since its launch the website has had over 140,000 visitors who have viewed over a million property pages - nearly 600,000 yesterday alone.
Tesco added: "Fish4Homes have an agreement with Tesco Property Market which we expect them to honour. We hope they will reconsider their decision... but whatever happens they must allow agents to chose whether to opt in or out of Tesco Property Market for themselves."
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I think it's great that Tesco's have bought this option into the public eye. It has been around for ages, but not many people realise it exists. I have just launched a website in the East Midlands where sellers can sell their homes for a special introductory price of only £69. It's called 4gettheagent.co.uk! It's going really well and the feedback has been great. Every opportunity for people to save money should be seen in a positive light - especially with the recent interest rises. Although I don't believe that Tesco's have the right to muscle in on every market sector and that ultimately the service they provide will not offer the same level of support to sellers as a site like mine, I am still pleased with the media coverage it is getting. Long may it continue!
4gettheagent.co.uk
Hayley, Bourne, England
I have been selling property privately online since 2001, I charge HALF the price that Tesco is charging and I am top ranked for google searches relating to property, this takes alot of work. I had to start my business with 0 properties on my books and grow gradually, this is a very common practise what Tesco has done by 'seeding' their new property site with properties, do they want to mislead their customers into thinking that all of those porperties listed have paid £199.
Trevor Gillham, Hayling Island, Hampshire
What do you mean Go Tesco's, all they try to do is get their sticky fingers in every pie possible out there. Soon enough you won't be able to do anything or spend any money without it going straight ino Tesco's ever increasing pockets. What about the independent estate agents out there who are going to lose their jobs, their livelyhoods and their business due these greedy Chief Exec's lining their pockets. Where are your local butchers, your local greengrocers, hardware shops, there aren't hardly any left now becuase they've all been swallowed up by Tesco's Express thate are now loitering on pretty much every high street in the country. Lets make as stance against the large corporates trying to muscle out the samll independents not the other way round.
Jane, London, England
I wonder if you get clubcard points if you buy a house from them...
Emma, Hull, East Yorks
If you sell via Tesco, who is liable for breaches of The Property Mis descriptions act or Estate Agency Act. Who will offer advice on pricing and offers? This is a valuable professional service, I just sold my house and the agent attended viewings etc.. because i work. I think they do a bit more than sticking an ad on a website.
Charlotte, Burton,
Obviously cheaper fees to sell your home are tempting. However Estate agents do a lot more than simply prepare particulars and put up a for sale board. I wonder how many sellers will think the Tesco option is such good value when they ve had to vet and show buyers, deal with solicitors, chains, councils/planning depts and mortgage advisors themselves? A good estate agent earns every penny!
Jake, Stroud, Glos
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."
What utter rubbish, the only value in estate agents is to themselves, they lie to both sellers and buyers, the world would be a much happier place if their profession was made illegal and they were forced to get "proper" jobs, plenty of toilets out there need cleaning, especialy this Summer music festival season!
Andrew, London,
I think Tesco's are just greedy and they should stick to what they know which is food............. leave the property market to the experts.............. Good on FIsh 4 Homes, I will not touch tesco and will use Fish 4 Homes to look for a new home.
Keith, Chigwell,
Well done to Tesco, The Estate agent is a dying breed, this it the way forward and will save the UK public millions of pounds! I will be using this site to sell my house in the next couple of months.
Kevin O'Connor, London, UK
I fully support Tesco - I hope they continue to give Estate Agents everything they deserve.
John, Devon, UK
Selling/buying a home is not as complex as estate agents make out. Armed with the right information (which the Tesco site provides) anyone can do it. GO TESCO and stop those thieving estate agents. I hope they all go out of business.
Sam, London,
Sir Terry Leahy, the Tesco chief executive, is in line to pocket an £11.5 million windfall on top of his salary. Tesco are not the little peoples champion. Don't be fooled! The only group to prosper in the long term will be Tesco.
Peter, Derby, England
Tesco bringing private online selling into the public eye is a good thing, but people should not be under the illusiion that this is something new - the leading national online property sites offering private home marketing in the UK have been around for 10 years! It's all very well the public moaning about agents and wishing there were alternatives, they just need to open their eyes and look - why continue to use agents over viable direct sell services?
Martin Charlick, Shaftesbury, Dorset
2 comments from people who have almost certainly never sold a house.
Most agents charge 1-1.5% down here not 3%. Why bother with all that hassle for 1% when your house goes up by 11% a year anyway?
Looks like Tesco trying to ride roughshod over everyone again just like they do in every town in the country.
Dave, Brighton, UK
Tesco are just muscling on the private sales market which has been developing strongly over the last ten years. We've successfully sold our last two house privately already using a site called HouseWeb.com. I think it is great that agents are going to get a hammering, but I'm sticking with using specialist private property sale sites rather than a supermarket to sell my home. They take too much of our money already!
Ron Smith, Guidlford,
People can now use Tesco and afford a proper survey before they sell their house. Out go the dishonest and self serving estate agent and dodgy builders who are joined at the hip and are all two faced.
The buying and selling process needs to be more transparent and inormed.
And double clubcard points too!
Fools United, Glucestershire, UK
Tesco enters the race with a site aimed not at the buyers but at the SELLERS!! many commentators have failed to understand that Tesco has leapfrogged the EAs and created a portal where pressurized sellers will list their properties to reach a wider audience and to speed up transactions. Tesco knows that when the market turns a buyer market EAs will favour the disposals of properties based on commissions and bribery. Giving sellers a direct communication link with the buyers will be the unique feature of the site. Tesco, as usual, will lead the way and win
Michele, Richmond,
Good on Tesco any thing that saves the little people cash has got to be good,estate agents at this time are a lot like double glazing a decade ago,a right rip off.
harrold, edinburgh,
Go Tesco,
Take the estate agents down!
They perform no function whatsoever. Parasites!
Michele, Richmond,