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Their *perception* of the value of their property may have gone down, but that doesn't mean it has for potential buyers.
I agree with Karen - THEIR perception of the value of the property went down but even with a dog pen out back - unless the dogs were out all the time- how many people would really know how many dogs you have. And again most people object when dogs are barking all the time, or your yard doesn't get picked up and the smell becomes overwhelming. I know that for myself, I would rather have dogs next door, than a house where there are junk cars or just junk sitting around.