Tesco to undercut estate agents online. Again

Mega grocer Tesco is to advertise a cut down online estate agent service on its website.

The outfit, called iSold, yeah really, is initially specialising in properties in the Bristol area. The iSold web site said it’s launching soon. If you enter a postcode outside the Bristol area, you’re offered a newsletter that will tell you when the service is coming to your area.

Terry Leahy, Tesco CEOThe irony is that estate agency Spicerhaart is behind the site. It bought an earlier Tesco venture called Tesco Property Market in 2008.

UK estate agencies charge between 1.5 percent to two percent of the selling price for the privilege of being the middle men between vendors and buyers. The iSold site will offer a basic service charge of £999.

That means that a house that’s sold for £400,000 would attract a typical estate agency charge of £9,400. That’s a bit more than the £999 iSold wants for its standard, or as it calls Essential, service. That £999 includes VAT.

The iSold web site claims that it’s using “advanced technology packed with features” to get the best price for your home. The service will also be offered on estate agent portals like Rightmove. Pictured above is Tesco CEO Terry Leahy.