Connect with us

Tech News

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?

Published

on

auction.com

auction.com

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.”

bar
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.

Continue Reading
Advertisement
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

Leave a Reply

Your email address will not be published.

Tech News

Offer customers a frictionless online experience with these updates

(MARKETING) Companies of all sizes still have clunky, hard-to-use websites – here’s how to fix that and offer a quality online experience.

Published

on

online experience

The internet has clearly done wonders for retailers and businesses that sell physical products. Ecommerce is exploding and the evolution of various platforms makes it possible for even the smallest of companies to create their own global supply chains with very little upfront investment or cost. But don’t forget about service-based businesses – such as beauty salons, yoga studios, gyms, chiropractors, and massage centers. These types of businesses have benefited tremendously as well.

The internet has given service businesses the opportunity to increase exposure, drive leads, and better engage modern customers in a convenient manner. However, with great opportunities come incredible responsibilities.

If you want your business to be competitive in today’s landscape, you have to offer customers and clients a frictionless online experience, or a so-called omnichannel solution.

Smooth user experience (UX) is what separates successful businesses from average ones when it comes to online marketing and lead generation. If you want to offer frictionless UX to your customers, here’s where you need to start:

1. Understand buyer journeys
“Today, customer interactions are continuous, contextual, highly personalized and ever-changing, no matter if the customer is on an iPad, talking to Alexa, or entering a subway station,” digital marketing expert David Aponovich points out.

The problem a lot of businesses encounter is a misunderstanding of the customer buyer journey. They view it in isolation, instead of as a long-term play.

“When you start to build digital experiences around your consumers’ actual lives and stop thinking in one-time purchases, you’ll be one step ahead of your competitors,” Aponovich continues. “Removing friction? It starts by being where your customers want you and need you to be.”

2. Offer convenient scheduling
No more asking customers to call the office or send an email in order to schedule an appointment. Rarely will a customer remember to do this. And if they do, it creates an unnecessary hitch in the buying process. You need to offer more convenient scheduling options.

An online appointment scheduling resource will help tremendously with this aspect of UX. A tool like SimplyBook.me makes it easy for smaller businesses (with minimal resources) to streamline the scheduling process for customers and clients. Customers can seamlessly move from interest to purchase/scheduling in the same step.

3. Present plenty of visuals
Nobody likes clutter. As you know, minimalism is the best policy in modern web design. If you want to give your visitors what they’re looking for, ditch the superfluous elements and meaty paragraphs. Instead, opt for high-quality visuals that say more with less.

4. Increase website functionality
Your website should be more than a receptacle for content – or even a platform for scheduling appointments. While these are important aspects, the site itself needs to be functional. This could look like selling physical products directly from the site (if you have them) or offering interactive content that addresses key customer pain points.

5. Make yourself discoverable
It’s easy to believe that UX is all about your website experience, but it actually encompasses a lot more than that. If you want to keep your customers happy, they need to be able to find you. Today, leading brands are putting a huge emphasis on social media, online word of mouth, SEO, and PPC advertising. Prioritize discoverability and you give yourself a pretty big head start.

The internet gives your business an opportunity to reach your target market in a manner that few who went before you would have ever dreamt possible. But it’s not enough to simply reach your audience. Once you engage them, you have to expose them to the frictionless online experience in order to drive conversions and grow your brand. Take some time to think about how you’re doing in this area.

Continue Reading

Tech News

Microsoft to become 3rd largest gaming company after Blizzard acquisition

(TECHNOLOGY) Microsoft will not be left behind in the Metaverse. The tech giant plans to fully acquire Activision Blizzard by 2023 for $68.7 billion cash.

Published

on

The front of the Microsoft office with large Microsoft logo.

Microsoft announced plans to acquire the video game publisher, Activision Blizzard, on January 18, 2022, in an all-cash transaction reported to be valued at $68.7 billion.

The deal gives the tech giant popular game franchises, such as World of Warcraft, Call of Duty, Overwatch, Diablo, and many more to add to its arsenal. This acquisition sets Microsoft up to be the third-largest gaming company by revenue.  Microsoft expects the deal to close in the 2023 fiscal year (which begins in July of this calendar year) once the customary closing conditions have been completed along with the regulatory review and Activision Blizzard’s shareholder approval. Both Microsoft and Activision Blizzard’s board of directors have already approved the deal.

This deal comes in hot on the heels of an avalanche of issues surrounding sexual harassment where 37 employees have reportedly left Activision Blizzard according to this article on The Verge. Microsoft states that Bobby Kotick will continue to serve as CEO of Activision Blizzard, and he and his team will maintain their focus on driving efforts to further strengthen the company’s culture and accelerate business growth. Once the deal closes, the Activision Blizzard business will report to Phil Spencer, CEO, Microsoft Gaming.

Phil Spencer, the CEO of Microsoft Gaming, posted both Activision and Microsoft Gaming will continue to operate independently until the deal is complete with Activision Blizzard then all business will be reported to Spencer.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” said Satya Nadella, chairman and CEO, Microsoft. “We’re investing deeply in world-class content, community, and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive, and accessible to all.”

Maybe you noticed the not-so-subtle hint regarding the Metaverse by Microsoft’s chairman and CEO Satya Nadella, but it seems everyone is quick to mention to the public and or other companies listening that they are gearing up to bring their A-game to the Metaverse. Whatever that ends up being.

In the meantime, we can predict some of the possible changes to come from this buyout. Microsoft currently has Game Pass, their subscription-based model for Xbox, which recently hit 25 million subscribers. Now’s the time to sign up for the Game Pass subscription before prices go up to match the revamped gaming inventory. Microsoft could potentially lock down new releases and not deliver them on other platforms, i.e., PlayStation, giving them exclusivity and driving subscription sign-ups.

Whatever ends up happening, Microsoft is making big moves to not be left behind in the gaming world or the Metaverse.

Continue Reading

Tech News

Want to save snippets of a Zoom meeting? Listener makes it possible!

(TECHNOLOGY) Listener lets you screenshot or bookmark important sections of live meetings, as well as curate a playlist of snippets, to share or playback.

Published

on

Listener for Zoom tool landing page on laptop.

We live in a very computer-mediated world where the bulk of communication is done virtually. Many of us spend a great deal of time – whether for work or pleasure – on video calls connecting with people that we’re unable to meet with in person.

Zoom became the unofficial mascot for the pandemic and has shown no signs of going anywhere. So naturally, people are looking for ways to put this to even more of an advantage – like by creating messaging extensions to utilize in lieu of live meetings.

Now the folks behind Listener are getting in on the action by creating Listener for Zoom.

The new tool allows users to bookmark important moments of Zoom calls in real-time and easily turn long recordings into bite-sized video clips.

As founder Nishith Shah puts it, “Zoom meetings just got more productive!”

Listener allows users to do a myriad of things, including live bookmarking to create short video clips; ability to transcribe your entire meeting; edit video clips by using transcripts instead of struggling with video editing tools; share video highlights with your team; create playlists from video highlights across different Zoom meetings to tell powerful stories; use projects to organize your meetings and playlists.

Founders say that Listener is designed for pretty much anyone who uses Zoom. In early testing, the founders found that it is especially helpful for product managers and UX researchers who do customer interviews.

They also reported that early-stage founders have been using Listener to add powerful customer videos to their investor pitch decks. It is also helpful for recruiters and hiring managers who search transcripts across hundreds of hiring interviews to remember who said what and to pass on important clips to other people in the interview process.

The tool is also beneficial for teams and hiring, as customer success and sales teams create a knowledge base with Listener to train and onboard new employees. They also use it to pass on customer feedback to the product teams.

This could also be great for clipping video elements that are appropriate for social media use.

On January 11, 2022, Listener was awarded #3 Product of the Day on Product Hunt.

Listener for Zoom is free while in Beta. The tool works only with licensed (paid) Zoom accounts.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!