According to Jim Recap: House for Sale

The house across the street is for sale, which at first is exciting news - Cheryl is simply in love with the house. But when the Tim Devlin and Cindy Devlin find out about it and decide that they are going to make an offer so that they can live near their best buddies, something has to be done about it. The first attempt is to make the street seem crime-ridden, with rumors of the Maple Street Gang. Andy, unfortunately, isn't very bright, and he "tags" Cheryl's minivan instead of the Devlin's car. It's on to the second plan.

If the Devlins want to move in to be close to Jim and Cheryl, perhaps they should move. So it's with a heavy heart that Jim tells Tim and Cindy that they will be moving to take over a cannery in Alaska, so since they won't be there, there's no reason to move in across the street. But then he makes a bad move, and he puts their house on the market to complete the illusion. Thinking that an outrageous asking price will scare off any potential buyers, he doesn't consider the Devlins, and when they accept his price, he bumps it up, and up, and up, but they still want it.

One night while Cheryl is getting ready for bed, she sees Cindy in the window, measuring for something, and that's when she finds out that Jim has sold the house. Thinking she spoiled the surprise, Cindy leaves, and Cheryl heads out to find Jim. That's when he tells her how much they got for the house, but Cheryl doesn't want to move - she wants to keep the house, so now they have to find a way to stay. Jim and Andy start working in the basement, adding "moisture" so that it will fail the inspection. But in the process, they burst a couple of water lines and completely flood the basement.

That's when the Devlins come in to see what's happening, and it ends up that they don't buy the house - and in the meantime, another buyer has come in to purchase the house across the street. It's Andy! So the Devlins won't live across the street either.

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