We live in a neighborhood that is about 8 acre lots with custom built homes. We just got our latest tax evaluation and the house had dropped about 10% from 2 years ago. Well 5 months ago our neighbor across the road went in to foreclosure. Three months later we notice a lot of activity with contractors going on. There was a new Escalade going in and out with some real snotty people that wouldn't return a wave. We speculated that they were fixing up their house to move in. WRONG. They bought the hose for a song. Did a bunch of fix ups to sell it. Now they are selling it for about 25% below value and still making a killing. The only way to determine value of your house out here is 2 or 3 comparable houses in the area. Our house just dropped another 40k. Hopefully some decent people will move in.