Homebuyer Bidding Wars in California

Just another example illustrating the scarce resale home inventory that exists with many California real estate markets.

Rob and Julia Israch won a fierce bidding war for a three-bedroom townhouse in Mountain View, Calif., late last year even though their $750,000 offer—while $92,000 above the asking price—was topped by 11 rivals and was several thousand dollars below the highest bid.

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Duryee family

Jonathan Duryee emailed the seller a photo of his baby and two dogs seated around a handwritten sign that read: 'We would love a big yard!'

With inventory tight and prices rising, buyers in competitive markets like Silicon Valley and Seattle are returning to a boom-era tactic: writing heartfelt letters to sellers explaining why they should win the house. WSJ's Joann Lublin joins Lunch Break with an inside look into what some families will do to score the home of their dreams. Photo: Sandy Huffaker for The Wall Street Journal.

A key reason: The seller, software engineer Lev Stesin, was moved by a letter in which the Israchs said they worked in the technology industry and explained how the home's spacious layout would be perfect given the imminent arrival of their first child. Among other things, the townhouse has three bathrooms, a wood-burning fireplace and a roomy backyard.