Tesco versus the knowledgeable local estate agent

A couple of weeks ago, the OFT report suggested "more innovation needed in home buying and selling market". Today, Tesco and Spicerhaart have announced the launch of their online estate agency arm, iSold.com, with a trial to launch in Bristol imminently.

As is becoming increasingly common in estate agency, they're offering a fixed fee service pitched at £999, £1,199 or £1,299 including VAT depending on the level of service.

I strongly believe that online estate agency is a growth area, but despite the Tesco brand value, at the levels indicated they are actually significantly more expensive than many of the other online agents in the market.

So what are the impacts for independent estate agents?

Firstly, iSold has the financial clout to cover all of the major property portals. That and the potential for in-store marketing ups the game expected of all estate agents. Listing properties as widely as possible is a must.

Perhaps more importantly, they have the potential to accelerate change (and acceptance of change) in modern agency pricing models, while at the same time shining a light on the importance of a good relationship with an agent who has deep local knowledge.

You couldn't have asked for clearer differentiators if you tried.

I've never seen the Tesco brand as one that offers a highly personalised attentive service and I don't suppose I am the only one. So much of business comes down to building relationships and trust is a huge issue in choosing someone to sell your property.

It will be a good wake-up call for some agents: change is coming. Now is the time to identify how you will compete - and to begin to make the necessary adjustments to your business. Small owner-run businesses have an agility in decision making that larger national firms simply cannot achieve. Take advantage of this!

Why not start with a bit of trust building on Zoopla's AskMe! It's amazing the number of locations I see where a single agent has a monopoly on responding to potential buyer queries..

UPDATE: (05/03/2010) Estate Agent Today have confirmed further details of the iSold.com pricing policy. Sellers will pay a non-refundable £299, £499 or £599 upfront, with a further £700 due when the property sells.