Spicerhaart and Tesco's iSold could force agents to chop fees

News Category: Industry News

Two-thirds of estate agents believe that iSold, the cut-price estate agency offering from Spicerhaart operated in association with Tesco, will have an impact on the market.

Research by movewith us questioned over 200 agents about iSold, which has launched in Bristol and is due to be rolled out nationally.

While 33% thought it would have no impact, 45% said it would force other agents to cut fees, and 21% thought it would reduce the number of agents by up to 25%.

Of those who believed that fees would be reduced, half (49%) believed it would cut fees by up to 0.25%, while nearly one-third (29%) thought it would cut fees by up to 0.5%, and 5% believed the reduction could be by up to 1%. A further 17% thought it would result in a new pricing system based on a scale of charges.

Robin King, movewithus online director, said: “iSold may only be a tentative step into the property market by Spicerhaart and Tesco, but only the most confident of agents can sit back and ignore the arrival of the retailer on to the property scene, as they gear up to make a significant impact in the long term.

“Agents will need to set up business plans to accommodate the lowest fees, whilst focusing on their local experience and expertise. This, combined with an enhanced online presence, will help the agent to remain successful in the future market.”

Spicerhaart, which wholly owns iSold, formerly Tesco Property Market, was given the opportunity to comment. Tesco's involvement in iSold relates to exclusive marketing rights.


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