D.C. area home buyers get creative in return of bidding wars

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One home he was interested in sold four hours after it came on the market. He never even got a chance to put a contract on it. When he heard about a fixer-upper in Eckington, a neighborhood in Northeast Washington, he and his real estate agent, Tim Barley, moved quickly. But despite the $50,000 escalation clause in his contract, Bennett lost out to an investor who paid cash.“I feel like I’m at speed dating with an engagement ring,” Bennett said. “As somebody who wants to put some sweat equity into a home, it’s frustrating knowing you have to compete against people who can put cash offers up for the same property.”
Jenny Hughes, the listing agent for the Eckington house, said she felt bad that Bennett lost out.“What breaks my heart is there are homeowners who are making offers on these places, too, that want to take out loans. They’re not getting the houses,” Hughes said. “It’s all about the cash. The seller doesn’t want to have to live through a financing.”Hughes said she had 19 offers on the Eckington property, which listed for $250,000 and sold for more than $300,000. She had another property on Capitol Hill that drew more than 30 offers. “It was like the cast of ‘Ben-Hur’ came out,” she said. “What I find interesting is how many people in D.C. have so much cash. . . . The D.C. market is just so hot. There are so many investors with so much cash.”

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