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Google invests $50M in Auction.com: good for Google, bad for consumers?

(Tech News) Auction.com 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?

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Google Capital Invests Big Bucks in Auction.com

The online real estate auction site, Auction.com, landed a monstrous investment from Google Capital. In a press release on the Auction.com 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 Auction.com, “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.”

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In speaking about their decision to extend funding, Google Capital Partner David Lawee is equally enthusiastic. He states, “We think Auction.com 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, Auction.com currently has some noteworthy practices.

Nationstar Mortgage Short Sales

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

For one, the Nationstar/Auction.com 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 Auction.com 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.

Auction.com Surcharge

Another hot button issue for consumers is that Auction.com 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: “Auction.com’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, Auction.com will bid against buyers in its own auctions.” It’s true that Auction.com 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, Auction.com does actually reserve the right to bid against the consumer. In their Reserve Auction Terms and Conditions, Auction.com 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 Auction.com? 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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8 Comments

8 Comments

  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 Auction.com.

  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
    confidence.

    • Kumar

      April 11, 2014 at 1:14 pm

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

  4. Maryann Little

    March 11, 2014 at 4:27 pm

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Tech News

The semantic argument of the phrase ‘Full Stack’

(TECH NEWS) As the tech industry knows, being able to classify your job qualifications is paramount.

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Semantics

A new debate is emerging in the web development world and it’s not about which framework is best, or which language is most marketable.

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In fact the debate isn’t a matter of code, it’s a matter of words.

It’s Not Just About Experience Level

“Full Stack Developer” is the title developers both new and old often use to describe themselves. According to a Stack Overflow developer survey touted as the “most comprehensive developer survey conducted” the title is among the top five respondents used to describe themselves.

However, not everyone thinks newer developers should adopt the title.

It would be easy to distill the debate to a matter of experience level, veterans earned the “full stack” title, while newer programmers haven’t. However, there’s way more layers to this debate.

What Exactly is Full Stack

First of all, a simple google search reveals several different definitions of “full stack.” There’s general consensus when it comes to the high-level definition. CodeUp sums up this definition, “The term full stack means developers who are comfortable working with both back-end and front-end technologies.”

When it comes down to the nitty-gritty of what exactly falls under back-end and front-end, there’s some disagreement.

Mastery level also matters, but again there’s disagreement over what’s acceptable. In one camp, are the proficiency pushers who require not only a breadth of understanding, but also a depth of understanding in multiple areas.

In this camp, it’s not just good enough to have exposure to SQL, one must have proficiency in SQL.

In the other camp, are the generalist. They also require a breadth of knowledge, but are happy with a basic familiarity of each stack element. When it comes to debating whether newer developers should adopt the full stack title, the lack of clarity on what full stack means in the first place is a major stumbling block.

Why Full Stack?

Besides clarifying the what behind “full stack” some folks are also clarifying the why. According to Indeed’s job trends, the number of postings and searches matching “full stack developer” on average has trended upwards since 2012 . The title’s popularity causes some to believe that new developers are adopting the title as a buzzword with no real care put into understanding what “full stack” means.

Android Programmer Dan Kim from Basecamp warns, “Just don’t fall back to labeling yourself with a bullshit buzzword that everyone else uses.”

For others, adopting the full stack title is a matter of mindset. As Web developer Christian Maioli over at TechBeacon writes: “To me, a full stack developer is someone who has the curiosity and drive to test the limits of a technology and understand how each piece works generally in various scenarios. Having this mindset will give developers more value and more power in dealing with new situations.”

In both cases, understanding why a new developer adopts the full stack title is connected to understanding whether they’re overselling their skills and how valuable their skills are to a potential employer.

Beyond Job Titles

Finally, this debate about whether new developers should use the “full stack” title brings up the need for alternative methods of measuring proficiency. This need isn’t limited to the web development world, as technology innovates job titles become convoluted.

A job title won’t be the most reliable way to communicate what you bring to a job or what you expect.Click To Tweet

Quantifying what you’ve accomplished in the past, along with what tools you used will be critical in a time where job titles aren’t trusted.

This story was first published here on April 7, 2017.

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We’ve all seen job listings for UX writers, but what exactly is UX writing?

(TECH NEWS) We seeing UX writer titles pop up and while UX writing is not technically new, there are new availabilities popping up.

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The work of a UX writer is something you come across everyday. Whether you’re hailing an Uber or browsing Spotify for that one Drake song, your overall user experience is affected by the words you read at each touchpoint.

A UX writer facilitates a smooth interaction between user and product at each of these touchpoints through carefully chosen words.

Some of the most common touchpoints UX writers work on are interface copy, emails and notifications. It doesn’t sound like the most thrilling stuff, but imagine using your favorite apps without all the thoughtful confirmation messages we take for granted. Take Eat24’s food delivery app, instead of a boring loading visual, users get a witty message like “smoking salmon” or “slurping noodles.”

Eat24’s app has UX writing that works because it’s engaging.

Xfinity’s mobile app provides a pleasant user experience by being intuitive. Shows that are available on your phone are clearly labeled under “Available Out of Home.” I’m bummed that Law & Order: SVU isn’t available, but thanks to thoughtful UX writing at least I knew that sad fact ahead of time.

Regardless of where you find a UX writer’s work, there are three traits an effective UX writer must have. Excellent communication skills is a must. The ability to empathize with the user is on almost every job post.

But from my own experience working with UX teams, I’d argue for the ability to advocate as the most important skill.

UX writers may have a very specialized mission, but they typically work within a greater UX design team. In larger companies some UX writers even work with a smaller team of fellow writers. Decisions aren’t made in isolation. You can be the wittiest writer, with a design decision based on obsessive user research, but if you can’t advocate for those decisions then what’s the point?

I mentioned several soft skills, but that doesn’t mean aspiring UX writers can’t benefit from developing a few specific tech skills. While the field doesn’t require a background in web development, UX writers often collaborate with engineering teams. Learning some basic web development principles such as responsive design can help writers create a better user experience across all devices. In a world of rapid prototyping, I’d also suggest learning a few prototyping apps. Several are free to try and super intuitive.

Now that the UX in front of writer no longer intimidates you, go check out ADJ, The American Genius’ Facebook Group for Austin digital job seekers and employers. User centered design isn’t going anywhere and with everyone getting into the automation game, you can expect even more opportunities in UX writing.

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Loopy is the new easy tool that helps explain hard ideas

(TECH NEWS) Loopy is a tool that can revolutionize how we explain anything from personal ideas to business complexities.

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In a world filled with complex systems, Loopy serves as a tool for people to take their time understanding them.

The tool allows users to create interactive simulations to help people explain their ways of thinking.

Loopy has found a way for people to interact with simulations without complicated code or overused drag and drop. You can create your own or collaborate with other simulations already made on the site.

It is a great way to challenge yourself while learning how each system works.

Loopy encourages you to ask hypothetical questions to better understand the systems. The model consists of circles and arrows to remain uncomplicated. When you remix or interact with simulations that were made by other users, it is as if you are having a conversation via the simulations. Loopy describes this as “talking in systems” which makes the entire experience more impactful.

Though Loopy can be used as a fun way to exercise your brain, it also has practical implications. For instance, simulations can be embedded into blog posts, live lectures and presentations. You can also develop videos to further explain complex ideas.

This is especially useful for businesses who want to simplify their models when communicating with investors and consumers.

Simulations can be a fun way to illustrate your thoughts and support your ideas. Businesses can use Loopy to create collaborative activities for their employees to mess around with as well.

The best part is that anyone can try it out for free. On their site, you can develop your own simulations or adjust ones that have already been made.

At its core, Loopy is simulation software.

However, their goal is to give everyone the tools that they need to understand complex systems. This goes for both the creators and the viewers, who are all a part of the process.

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