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Dear PoP – Developers/Flippers are Buying all the Good Homes

by Prince Of Petworth March 17, 2010 at 9:10 pm 89 Comments

02.21.10
Photo from PoPville Flickr user awmiller

“Dear PoP,

My fiancée and I have been looking for houses for a year now. Petworth is one of our 1st neighborhood choices as we love the balance between urban convenience and green space/parks (we have been looking at houses below Allison St). However, our search has been very frustrating as we have lost house after house to real estate investor who swoop in and offer all cash (I think we have submit and lost offers on 10+ homes now). We have offered over the listing price multiple times now but cash rules everything around us(?). We have since expanded our search to include other “edge” or developing neighborhoods but it is definitely a city-wide trend. From a neighborhood perspective, I guess it is a good thing (depending who you speak to) because investors will make improvements and then flip the house to others, thus improving the housing stock of a neighborhood and driving up home values but we can’t seem to win even though we have what I think to be an adequate budget (up to $450k) for the area.

I don’t know who these investors are (I have created a mental image of a Porsche convertible driving, latte sipping, sun glass wearing, Louis Vutton bag holding, toy poodle having, trust fund baby to help me cope) but in all reality it has been pretty sobering.

I guess my question is, are there any other aspiring home owners out there feeling the same frustration and does anyone know when a regular Joe with financing and not cash will be able to win?”

I feel like I have heard similar stories in Petworth, Columbia Heights and Bloomingdale. To be honest I’m shocked that you have been unable to close on a property in Petworth for $450k. I hope that if you persevere the right home will come through for you. But for others out there shopping around, have you noticed that developers/flippers are getting all the “good” homes?

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