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Google invests $50M in good for Google, bad for consumers?

(Tech News) has recently seen a fat cash infusion from Google, and both seek to revolutionize real estate. Again. But who really benefits from this investment, and is it at the cost of consumers?



Google Capital Invests Big Bucks in

The online real estate auction site,, landed a monstrous investment from Google Capital. In a press release on the website, the largest online auction site for buying a selling homes announced that Google Capital invested $50 million dollars in their Irvine, California-based company.

According to the Jeff Frieden, CEO and Co-Founder of, “Google is the world’s greatest Internet company and we’re thrilled to have the opportunity to work closely with them. This will give us an opportunity to tap into their deep expertise in digital marketing and mobile, as well as in building world-class products.”

In speaking about their decision to extend funding, Google Capital Partner David Lawee is equally enthusiastic. He states, “We think can fundamentally change how real estate, and particularly commercial real estate, can be bought and sold, leveling the playing field for smaller investors.”

Since Google is widely recognized as a forward-thinking business leader, one might want to take stock in their decision to back such a company.

Real Estate Consumers and Professionals May Want to Take a Second Look

While this cash infusion may lead to some fundamental changes in how real estate is bought and sold, currently has some noteworthy practices.

Nationstar Mortgage Short Sales

One of the largest contributors of properties to the website is Nationstar Mortgage. Nationstar requires borrowers who want to sell their homes as short sales to auction those properties through the website, and this process is not without its criticism.

For one, the Nationstar/ process is a little bit disjointed. A real estate agent lists a property, obtains an offer, and submits the paperwork (including the fully executed purchase contract) to Nationstar. Nationstar then requires the property to be listed on the website, and the bidding on this property is now open to the public.

Many agents complain that this process completely ignores the existing purchase contract between buyer and seller. Given the fact that the seller (not the bank) is the rightful owner until the property, it is the seller who should determine the best purchase offer on the property. The existing contract should not be ignored. Surcharge

Another hot button issue for consumers is that requires a surcharge when you purchase a property through their site. For some properties, the surcharge is $2500. But, for those short sale properties that came via Nationstar bank, the surcharge is 5 percent. So, if you bid $250,000 for a property listed on the site, your total purchase (excluding settlement fees) could be $262,500. In effect, homebuyers may end up overpaying for a property.

Possible Price Inflation

Most consumers have the impression that an “auction” begets a deal. In some instances, that may be the case. However, in an auction, people bid against one another and that raises the price, often even causing a buying frenzy, which clearly works to the benefit of the seller.

Elizabeth Story, a San Diego County Realtor® at Allison James Estates & Homes, points out the following unfair consumer practice: “’s properties listed for sale have unpublished reserves that allow the seller to decline the transaction, even if you are the winning bidder. In order to encourage bidding up to the unpublished reserve, will bid against buyers in its own auctions.” It’s true that does not publish their reserve amounts on their site, unlike other sites (such as ebay) where the reserve is visible to the consumer.

But, unlike other auction sites, does actually reserve the right to bid against the consumer. In their Reserve Auction Terms and Conditions, states, “The starting bid is not the Reserve Price. Except where prohibited by law, during a live bidding event (online or otherwise) the Auctioneer may open bidding on any Property by placing a bid on behalf of the Seller and may further bid on behalf of the Seller up to the amount of the Reserve Price by placing successive or consecutive bids for a Property, or by placing bids in response to other bidders.”

Homebuyers need to understand that the Auctioneer may be bidding against them and, as a result, inflating the price paid to the property to their own benefit and the benefit of the seller.

Online Bidding May Benefit Sellers

The truth is that the online bidding process may also benefit those home sellers that list their homes for sale on the site. In situations of properties where there has been limited interest at the local level through common real estate advertising practices, sellers may be able to increase their buying pools. In the example of luxury homes valued in the millions of dollars, widening the buying pool could possibly lead to a quicker closing.

Thinking of buying a home on Think that if it’s good for Google, it’s good for me? “It’s important to know the facts,” Story says. “Buyers need to know that they are not shortchanging themselves.”

It’s true that the online real estate auction site may have some good features, but as always… caveat emptor!

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

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  1. Missy Caulk

    March 10, 2014 at 12:15 pm

    Thanks Melissa, I tried to use it for myself for a condo in TN. I sat there and watched the bids go up. The scary part of your post is that they can bid up the price. There was a discussion on FB about this a few days ago and most folks said the paper work was horrendous. Makes me concerned for the consumers.

  2. Nick Fisherman

    March 11, 2014 at 1:00 pm

    I am a 26 year old bachelor with no kids. I have no current plans to buy a home. But, my philosophy has pretty much always been “if it’s Google, it’s better.” Apparently, that is no longer valid. Thank you so much for this enlightening article. I will stay away from

  3. Chris Wilkenson

    March 11, 2014 at 2:51 pm

    In theory, if the seller’s reserve is not met by the market, then the
    seller will not sell the property. That same concept holds true on ebay,
    where there is a reserve and if it’s not met then the product doesn’t
    sell. So what’s the difference is the seller bids up to the reserve or
    doesn’t? The same theoretical framework holds true. I feel this article
    is a misinformed, judgmental piece based on analogous insight that’s not
    actual validated through a conceptual framework. Stay away from
    publishing such opinion with such assertion and matter-of-fact

    • Kumar

      April 11, 2014 at 1:14 pm

      What if the buyer made the last bid (which was inflated by and puts it over the reserve price?

  4. Maryann Little

    March 11, 2014 at 4:27 pm

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Tech News

Snap a business card pic, Microsoft app finds ’em on LinkedIn

(TECH NEWS) Microsoft Pix is teaming with LinkedIn in a neat way that will benefit networking, especially if you have any lazy bones in your body.



microsoft pix

Have you ever been watching some sort of action-adventure movie where there’s a command center with all sorts of unbelievable technology that kind of blows your mind? Well, every day we come closer and closer to living within that command center.

You may think that I’m talkin’ crazy, but check this out – there is a new technology that can scan a business card, and find the business card’s owner on LinkedIn. (Can I get a “say what????!”)

This app is courtesy of Microsoft and goes by the name Pix (it’s not new, but this function is).

The way it works is simple: Bill Jones hands you his business card, you fire up the Pix app (currently only on the iPhone. Sorry, Droids), you snap a picture of the card and the app takes the details (phone number, company, etc.) and finds Bill on LinkedIn. Bingo.

It also will automatically take that information and will create a new profile for Bill Jones within your phone’s contacts. After you scan the business card through Pix, Microsoft will ask if you want to take action.

At this point, Pix will recognize and capture phone numbers, email addresses, and URLs. If your phone is logged into LinkedIn, the apps will work together to find Bill’s profile. Part of me wants to think that this is kind of creepy but a larger part of me thinks that it’s really cool.

According to Microsoft Research’s Principal Program Manager, Josh Weisberg, “Pix is powered by AI to streamline and enhance the experience of taking a picture with a series of intelligent actions: recognizing the subject of a photo, inferring users’ intent and capturing the best quality picture.”

“It’s the combination of both understanding and intelligently acting on a users’ intent that sets Pix apart. Today’s update works with LinkedIn to add yet another intelligent dimension to Pix’s capabilities.”

Pix itself originally launched in 2016 as a way to compete against AI’s ability to edit a photo by use of exposure, focus, and color. This new integration in working with LinkedIn is a time saver, and is beneficial for those who collect business cards like candy and forget to actually do something with them.

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Tech News

Walmart and the blockchain, sitting in a tree

(TECH NEWS) Say goodbye to #foodwaste with Walmart’s new smart package delivery proposal featuring everyone’s favorite pal, blockchain.




Following the trend of adding “smart” as a prefix to any word to make it futuristic, Walmart now proposes “smart packages.” The retail giant filed for a new patent to improve their shipping and package tracking process using blockchain.

Last week, the U.S. Patent and Trademark Office (USPTO) released the application, which was filed back in August 2017.

Officially, the application notes the smart package will have “a body portion having an inner volume” and “a door coupled to the body portion” that can be open or closed to restrict or allow access to the package contents.

In other words, they’ve patented a box with a door on it that also has lots of monitoring devices.

Various iterations lay claim to all versions of said box include smart packaging utilizing a combination of monitoring devices, modular adapters, autonomous delivery vehicles, and blockchain.

Monitoring devices would regulate location tracking, inner content removal, and environmental conditions of the package like temperature and humidity. This could help reduce loss of products sensitive to environmental changes, like fresh produce.

Modular adapters perform these actions as well, and also ensure the package has access to a power source and the delivery vehicle’s security system to prevent theft.

Blockchain comes into play with a delivery encryption system, monitoring, authenticating, and registering packages. As it moves through the supply chain, packages will be registered throughout the process.

The blockchain would be hashed with private key addresses of sellers, couriers, and buyers to track the chain of custody. Every step of the shipping process would be documented, providing greater accountability and easier record keeping.

This isn’t Walmart’s first foray into the world of blockchain. Last year they teamed up with Nestle, Kroger, and other food companies in a partnership with IBM to improve food traceability with blockchain.

Walmart also took part in a similar food tracking program in China with last year as well.

And let’s not forget Walmart’s May 2017 USPTO application to use blockchain tech for package delivery via unmanned drones. Their more recent application builds on the drone idea, which also proposed tracking packages with blockchain and monitoring product conditions during delivery.

In their latest application, Walmart notes, “online customers many times seek to purchase items that may require a controlled environment and further seek to have greater security in the shipping packaging that the items are shipped in.”

Implementing blockchain and smart package monitoring as part of the shipping process could greatly reduce product loss and improve shipment tracking.

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Tech News

Experts warn of actual AI risks – we’re about to live in a sci fi movie

(TECH NEWS) A new report on AI indicates that the sci fi dystopias we’ve been dreaming up are actually possible. Within a few short years. Welp.



AI robots

Long before artificial intelligence (AI) was even a real thing, science fiction novels and films have warned us about the potentially catastrophic dangers of giving machines too much power.

Now that AI actually exists, and in fact, is fairly widespread, it may be time to consider some of the potential drawbacks and dangers of the technology, before we find ourselves in a nightmarish dystopia the likes of which we’ve only begun to imagine.

Experts from the industry as well as academia have done exactly that, in a recently released 100-page report, “The Malicious Use of Artificial Intelligence: Forecasting, Prevention, Mitigation.”

The report was written by 26 experts over the course of a two-day workshop held in the UK last month. The authors broke down the potential negative uses of artificial intelligence into three categories – physical, digital, or political.

In the digital category are listed all of the ways that hackers and other criminals can use these advancements to hack, phish, and steal information more quickly and easily. AI can be used to create fake emails and websites for stealing information, or to scan software for potential vulnerabilities much more quickly and efficiently than a human can. AI systems can even be developed specifically to fool other AI systems.

Physical uses included AI-enhanced weapons to automate military and/or terrorist attacks. Commercial drones can be fitted with artificial intelligence programs, and automated vehicles can be hacked for use as weapons. The report also warns of remote attacks, since AI weapons can be controlled from afar, and, most alarmingly, “robot swarms” – which are, horrifyingly, exactly what they sound like.

Read also: Is artificial intelligence going too far, moving too quickly?

Lastly, the report warned that artificial intelligence could be used by governments and other special interest entities to influence politics and generate propaganda.

AI systems are getting creepily good at generating faked images and videos – a skill that would make it all too easy to create propaganda from scratch. Furthermore, AI can be used to find the most important and vulnerable targets for such propaganda – a potential practice the report calls “personalized persuasion.” The technology can also be used to squash dissenting opinions by scanning the internet and removing them.

The overall message of the report is that developments in this technology are “dual use” — meaning that AI can be created that is either helpful to humans, or harmful, depending on the intentions of the people programming it.

That means that for every positive advancement in AI, there could be a villain developing a malicious use of the technology. Experts are already working on solutions, but they won’t know exactly what problems they’ll have to combat until those problems appear.

The report concludes that all of these evil-minded uses for these technologies could easily be achieved within the next five years. Buckle up.

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