Ozone Park homeowners Charles and Karen Neglia have filed a harassment lawsuit against neighbors Guido and Milagros Florentin in Queens Supreme Court, the New York Post reported Monday.
The Neglias allege the Florentins repeatedly lied to potential buyers about the state of the house to scare them off.
The battle between the neighbors began when the Neglias put their home up for sale in April for an asking price of $317,000.
Guido Florentin made an offer of less than half and Charles Neglia rejected it.
Then, Florentin allegedly told prospective buyers the house was in "need of repairs" and had "structural problems."
Records from the real-estate tracking firm Redfin showed the price on the Neglias' house dropped to $269,990 in April, then three times in May to $240,000 and finally to $235,000 on June 20.
The Neglias are seeking $1 million in damages.