To update this question, one of the houses that we were out-bidded in Saratoga was being flipped. We were out-bidded in Jan 2007 and the final sale price was $1.15 mil less $70K credit back and net was $1.08 mil (3b/2.5ba, 1600 sq ft, 10019 ft lot size, major renovation done in 2000), and we found out that it was a zero down mortgage. That same house came back on the market on Jun 2007, asking for $1.3 mil, and owner did not do a thing, put in crown molding, pull out a few shrubs and that was it. We made another offer to $1.18 mil as we really like the house, but flipper turn down our offer. They subsequently dropped price to 1.2735 mil in Aug, 1.2705 mil in Sept, $1.255 mil in Oct $1.2295 mil in Nov, $1.198 mil in Dec 2007. By then it was in short sale and then bank owned. Sold $1.05 mil in Mar 2008. This happened right at the time when the sub prime mortgage crisis surfaced.