I'm from Palo Alto, and I moved back from Virginia after my husband (a former Navy F-18 pilot) died of gall bladder cancer two years ago. I knew that local home prices were high, but hadn't realized quite how stiff the competition had gotten.

What's crazy is how many people here are capable of putting in all-cash offers. I had a budget of $700,000 from my husband's insurance and from our savings, including the years I worked as an engineer. We were both good at saving money.

It was tough to find even a modest home. I just wanted to not have to move anymore after having to relocate several times as a Navy wife.

I found a two-bedroom, one-bath, 890 square-foot condo listed for $580,000 around the corner from my sister. I bid just under $600,000, all cash with no contingencies and I could close in seven days. The bid got blown out of the water. Somebody else offered $640,000.

I hunted for a home for several more months until I found a 1,200 square-foot condo listed for $575,000. It was close to perfect, down to my favorite green color on the walls. There were a lot of other buyers interested though.

But, as the seller was showing us the backyard, an F-18 took off from a nearby base. My son Benny said, "Look mommy just like dad would fly."

We weren't the highest bid but I think the seller felt bad for us. We paid $635,000, all cash, no contingencies.