If you’ve been browsing Zillow lately and saw a Cape Coral home listed at just $5,000, your reaction was probably something like:
“Wait… is that real?! A house in Florida for five grand?!”
Spoiler alert: Yes, the listing is real - but that $5,000 price isn’t what you think it is.
Let’s break down what’s actually going on.
🔍 The Listing in Question
The property at 1038 NE Van Loon Ter in Cape Coral is:
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A 2 bed / 2 bath single-family home
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1,229 square feet
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Built in 1986
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Bank-owned foreclosure
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Currently listed for auction
But here’s where the confusion starts…
💸 Why Zillow Says $5,000
Zillow pulls its data from third-party auction platforms like Auction.com. These platforms often enter the starting bid (sometimes as low as $1 or $5,000) into the listing feed, which Zillow displays as the “price.”
But that “price” doesn’t mean:
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It’s for sale for $5,000
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You can buy it outright for that amount
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That’s even close to the home’s value
In fact, the true opening bid for this home is $95,000, and the estimated resale value is closer to $344,000.
🧠 What’s Really Going On?
1. It's a Common Auction Strategy
Auction sites often list a property with a very low starting bid to:
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Get attention
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Create bidding competition
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Encourage investors and bargain hunters to register
It’s like seeing a luxury watch listed for $1 on eBay - it’s technically true, but it’s going to go much higher.
2. Zillow Isn’t Always Up-to-Date
Zillow doesn't adjust or verify auction listings in real-time. If the auction platform later updates the opening bid or price structure, it may not sync right away.
So that $5,000 price tag could be:
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Outdated
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Misleading
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Just a placeholder
3. It’s Not a Scam - but It’s Not the Deal You Think
While the property is real and the auction is legitimate, that $5,000 figure should not be mistaken for:
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The final sale price
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The home’s market value
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A no-strings-attached deal
In fact, the auction includes:
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A 5% buyer’s premium or $2,500 minimum fee
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Cash-only terms
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No interior access for inspections
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Possible liens or back taxes
🛑 So Should You Chase a $5K Zillow Home?
You can, but do it the smart way.
Before bidding on any foreclosure or auction property, make sure to:
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Check the actual auction platform (not just Zillow)
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Read the terms, timelines, and buyer requirements
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Consider hidden costs like title work, repairs, and fees
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Work with a local expert to avoid costly surprises
💡 Final Thought:
That $5,000 home isn’t exactly what it seems - but it’s a great reminder that opportunity (and confusion) is everywhere in this market. With the right help, you can turn curiosity into a smart investment.