Published on : Tue, 24 May 2005 00:00GMT
by : Lucy Andrews

Tesco, the superstore giant that created its own set of medical and musical stores giving other chemists, stationers and music retailers a run for their money, is now making a foray into the property sector that is ruled by estate agents.

Donning the role of an estate agent, Tesco is considering selling properties online through its website. The group is presently discussing the matter with an internet expert for modification of its website to suit the purpose.

While Tesco’s entry into the property-selling sector is going to slash moving costs for customers on one hand, it is also sure to see the huge 80,000 estate agent league fuming on the other, since they rake in at least 1%-2% of the selling price as commission every time a house is shifted. Statistics in The Grocer suggest that with Tesco venturing into the sale of houses and charging only £50, the expenses involved in the moving of a home will be cut drastically.

Furthermore, Tesco will stand to add a new feather to its financial services cap through its new estate agency business, since an undertaking like that would in turn make space for novel products and services related to the industry, like mortgages and home insurance firms. People who are swindled or dissatisfied with their local property agents will be seen flocking in large numbers at Tesco’s website.

In fact, analysts believed that Tesco would effortlessly be able to extract market share from estate agents as a common feeling of hatred and aversion towards them existed amongst people owing to their unscrupulous practices, while Tesco was a publicly known and respected brand.

An online expert was quoted as saying, “no one likes estate agents and if you're comparing trusted brands, Tesco will come out on top any day against any estate agent. This property website is a no brainer for Tesco.”

Estate agents, meanwhile, are already weathering rough storms following the recent downturn in the property market.