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Buying your first home can feel confusing, overwhelming—and let’s be real, a little intimidating. Keys & Cafecito is here to change that.
Hosted by Realtor® Anna Franklin, this podcast breaks down the homebuying journey into clear, honest, and easy-to-digest episodes—perfect to enjoy with your morning cafecito. Whether you’re just starting to save, wondering if now’s the right time, or getting ready to make offers, you’ll get real talk, practical tips, and a little encouragement along the way.
Because your future keys? They’re closer than you think.
Hello, everyone, and welcome back to Keys & Cafecito. I'm Anna Franklin, Realtor here in San Diego, California.
Today we're talking about something almost every homebuyer has experienced.
You're scrolling through Zillow or Realtor.com, and suddenly you see it.
A beautiful home.
Great neighborhood.
Plenty of square footage.
And it's listed for way less than everything else around it.
Immediately your mind starts racing.
"Is this real?"
"Did I just find the deal of a lifetime?"
Or maybe...
"What's wrong with it?"
The truth is, there are several reasons why a home might appear to be a bargain, and understanding those reasons can save you a lot of disappointment—and maybe even help you find a great opportunity.
So today we're going to break down some of the most common types of homes that seem "too good to be true."
Let's start with strategically priced homes.
Strategically Underpriced Listings
One of the biggest surprises for first-time buyers is learning that the list price isn't always the price the seller expects to accept.
Sometimes a seller and their agent intentionally list a home below its estimated market value.
Why?
Because a lower list price can attract more attention.
More people schedule showings.
More buyers become emotionally invested.
And in some markets, that can lead to multiple offers competing against each other.
Now, this isn't necessarily a bad strategy.
Sometimes it works very well.
But here's where buyers get frustrated.
You see a home listed for $700,000.
You get excited because it's within your budget.
Then offers come in, and the home ultimately sells for $760,000.
Was it ever really a $700,000 house?
Maybe not.
That's why it's so important to look beyond the list price.
Your agent should also be reviewing comparable sales so you have a realistic idea of where the home may actually sell.
Otherwise, you may spend weeks chasing homes that were never realistically within your budget.
Foreclosures
Next, let's talk about foreclosures.
A foreclosure happens when a homeowner is unable to keep up with their mortgage payments, and eventually the lender takes ownership of the property.
Many people picture foreclosures as incredible bargains.
Sometimes they are.
But not always.
Most buyers today purchase what's called an REO property, which stands for Real Estate Owned.
That simply means the bank already owns the home.
The nice thing about many REO properties is that you can often finance them just like a traditional purchase.
But there are some things to keep in mind.
Many are sold "as is."
The bank may not complete repairs.
The property may have deferred maintenance.
And because banks usually have standardized procedures, negotiations can sometimes feel less personal than working with an individual seller.
Still, if you're prepared, a foreclosure can absolutely be a good opportunity.
Pre-Foreclosures
Now let's clear up one of the biggest misconceptions I hear.
People often find a home online labeled "pre-foreclosure" and assume it's available for purchase.
Not necessarily.
A pre-foreclosure simply means the homeowner has fallen behind on payments and the foreclosure process may have begun.
But the homeowner still owns the property.
They may catch up on payments.
They may refinance.
They may sell traditionally.
Or they may never actually lose the home.
So just because a website labels a property as a pre-foreclosure doesn't mean you can call and buy it tomorrow.
It's simply one piece of information about that property's current status.
Fixer-Uppers
Another reason a home may seem inexpensive is simply because it needs work.
Maybe it needs a new roof.
Maybe the kitchen hasn't been updated in thirty years.
Maybe the flooring, paint, windows, or plumbing all need attention.
Sometimes these homes offer great potential.
But before you get excited about the lower purchase price, ask yourself another question.
Do I have the money to make the repairs after closing?
Remember, buying the home is only part of the financial picture.
If you're already stretching your budget to qualify for the mortgage, taking on a major renovation immediately afterward may not be realistic.
Probate Sales
You'll also occasionally come across probate properties.
These are homes being sold as part of settling someone's estate after they pass away.
Many buyers assume probate automatically means a discounted price.
That's not necessarily true.
Some probate homes are beautifully maintained and priced right at market value.
Others need repairs.
Every situation is different.
The word "probate" simply describes the legal process—not the condition of the home or whether it's a bargain.
So... How Do You Know If It's Really a Good Deal?
Here's my advice.
Don't fall in love with the list price.
Fall in love with the value.
Ask questions.
Look at comparable sales.
Understand why the home is priced the way it is.
And remember that every "deal" comes with a story.
Sometimes it's a fantastic opportunity.
Sometimes there's additional work involved.
Sometimes it's simply a marketing strategy.
The important thing is understanding what you're looking at before you get emotionally attached.
Because an informed buyer makes better decisions.
Thank you so much for joining me for another episode of Keys & Cafecito.
If you found this episode helpful, I'd love it if you'd subscribe and share it with someone who's thinking about buying a home.
And in our next episode, we're going to talk about another topic that surprises a lot of buyers: what actually happens after your offer is accepted.
Until next time, take care, and I'll see you in the next episode.