MIAMI-Mark Zilbert, president and founder of locally based Zilbert Realty Group, has launched Condo Flip, an online marketplace for selling and buying pre-construction condos. Its launch follows by less than a week the debut of USCondex, an online condo marketplace introduced by locally based developer Swerdlow Group and a bank partner.
Unlike USCondex, Condo Flip includes only pre-construction condos. Zilbert estimates that 70,000 units are currently being built here, "and we don't have that many local buyers," he says. "Condo Flip opens up the pre-construction condo market to millions of buyers worldwide." He estimates that up to 80% of pre-construction condo buyers are investors or speculators, rather than users. "They are looking to flip--re-sell before taking possession--and Condo Flip gives them a head start." He contends that expanding the market globally can prevent panic selling and "curb any type of bubble."
Listings are free, and so is trading up to the point of a sale. Once a transaction is executed, Condo Flip takes a broker's commission of 4%, compared with the customary 6%. Other brokers and developers' sales agents are invited to list properties on the site, and, in those cases, Condo Flip splits the commission. "We reduced the usual commission, because online transactions are more efficient and require less time and effort," he says.
Asked if Condo Flip would lead to day trading in condos in the same way individuals trade stocks and mutual funds online, Zilbert explains that it could. "Yes, it allows people to play the market from anywhere in the world," he admits, adding, "that's already happening informally now." He also acknowledges that most brokers and developers avoid using the word flip and says, "I'm trying to bring it into the language of real estate, because it's the reality."
Like USCondex, Zilbert plans to expand beyond Florida, and Las Vegas is next in line. He plans to accomplish expansion in partnership with local-area brokers through either a licensing or franchising agreement.
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