Website brings condo boom online

Capitalizing on South Florida's surging condo market, a new website launching this week will allow potential buyers to shop for and even purchase a condominium online.


BY ELAINE WALKER
ewalker@herald.com

Tue, Jun. 14, 2005

The Internet has become a viable shopping tool for pretty much everything -- music, stocks, even airplane tickets. Now add another category to the mix: South Florida condominiums.

Launching on Wednesday is www.uscondex.com, a website that aims to capitalize on the area's already booming condo market. More than a listing service, an entire deal can be completed online.

The founders of U.S. Condo Exchange, which include the principals of Coconut Grove developer Swerdlow Group, believe they can revolutionize the market.

''We want to create the eBay for condos,'' said James Haft, chief financial officer for the business.

The site will launch with $5 billion in property listings largely from South Florida, ranging from entire buildings now under construction to individual units. Over time, the plan is to expand throughout Florida, to other key urban markets in the United States and internationally.

It's a market that the principals of U.S. Condo Exchange already know well. The firm's chief executive, Richard Swerdlow, is also chief operating officer of Swerdlow Group, which is owned by his father, Michael Swerdlow. Their company is developing Biscayne Landing in North Miami, as well as other condo projects in Riviera Beach and Daytona Beach.

They see a changing marketplace with a growing number of buyers looking at South Florida condos as investments or second homes.

''Condos are not single-family homes; they are in many cases a commodity purchase,'' Richard Swerdlow said. ``There are an increasing number of people buying condos without seeing them.''

While there are dozens of real estate websites already on the market, U.S. Condo Exchange bills its site as the first to offer real-time transactions and a focus on solely the condominium market.

ANTICIPATED IMPACT

The site marks the latest in what is a growing controversy over the integration of the Internet as a key tool in the real estate process -- a tool that threatens to put a dent in the business of traditional real estate agents.

One of the main ways uscondex.com expects to make its money is by earning brokerage fees through the transactions that are consummated on or off its site.

Some experts don't think that will go over well with Realtors.

''I would bet this is going to brew a war,'' said Michael Cannon, a Miami real estate analyst. ``Some people are trying to computerize real estate like they did for the stock market, and it will never happen.''

For potential buyers, the free site offers one-stop shopping. At uscondex.com, they can research and compare features on different condominiums and prequalify for a mortgage with Bank of America. Once they're ready to buy, they can negotiate the purchase or put down a reservation. If the buyer comes from another country, the site offers a currency converter.

Eventually, the plan is also to launch an online auction feature, as well as databases for condo rentals and condo hotels.

Visitors to uscondex.com will find listings that come from a variety of sources, including traditional real estate listings. Developers of new condos pay $2,500 per month to list an entire building; individual condo owners pay $149 per month for a listing. Introductory discounts are also being offered.

Developer Bruce Goldstein has already listed his newest project, Mei, a 132-unit condo on Miami Beach with prices starting at $1 million per unit.

''It's just an additional way to get our project noticed,'' Goldstein said. ``We think there's a big future with this as a marketing tool.''

SEIZING THE MOMENT

If ever there was a time for a vehicle like the U.S. Condo Exchange, it is now.

In Miami alone, more than 61,000 residential units are planned or under construction, more than eight times the number built during the past decade. Downtown Fort Lauderdale has 3,904 new residential units recently built or in the pipeline and another 1,750 units awaiting city approval, according to the Downtown Development Authority.

But distinguishing between those condominiums can be difficult. They're all pitching the same upscale lifestyle, complete with glitzy parties and seductive ads featuring models enjoying the good life.

''It's become very much a numbers game of how many people can we reach,'' said Philip J. Spiegelman, owner of International Sales Group, a broker for new condos like Marina Blue and 360(s0). ``This is a way for us to reach a broad audience. There's no question it will help us find potential buyers.''

U.S. Condo Exchange allows a condo buyer to look at a host of detailed, side-by-side comparisons of projects -- such as the number of parking spaces and whether they allow pets. There's also an opportunity to compare amenity packages so you can weigh the options of imported porcelain tile floors vs. marble.

''Most condominium ads feature a girl by the pool, and you can't really adequately identify what the product is,'' Swerdlow said. ``We wanted to create a transparent marketplace, where buyers are empowered.''

While many real estate experts and brokers see the merit of a site like uscondex.com for research purposes, they doubt that many people are going to buy property online, sight unseen.

''People want to do a lot of armchair research, but you've got to be a real estate speculator to buy something without seeing it,'' said Lewis Goodkin, a Miami real estate analyst. ``Most people will want to touch and feel it.''

For those not comfortable with an online deal, uscondex.com offers a phone number buyers can call for assistance. There is also an option for the buyer and seller to complete the deal offline.

`AN EMOTIONAL BUY'

Either way, traditional real estate brokers say uscondex.com can't compete. They argue that an online buyer, especially one not buying solely as an investment, will lose out on the personal service of a broker who can offer insight on anything from the reputation of the architect designing the building to how to choose the best views.

''This is an emotional buy,'' said Mike Pappas, president of Keyes Realty. ``We still believe that with any high-priced, emotional purchase, you need coaching and counseling from somebody knowledgeable.''