Okay, let's try this again. My luck I won't explain things as well as I had before.
I looked over your character sheet again, so this is based on what spells you've got on right now.
You're not sure what the demons are fighting. You think you know, but it's different from what you believe it to be. You're guessing that given its size, and the shape of its head and jaw (when you see it biting at the flying demons) that
maybe it's a tarrasque, but it's got strange looking spines coming out of various parts of its body, and its skin seems to shimmer when it's exposed to the setting sun, or shadowed over when it's not. The large burst of light came from that creature. After the brightness subsided, the creature was gone. As if it had never been there previously.
You have no idea what the situation is for the demons. Obviously they won or the creature would still be there, but with the trees being so tall and thick, and you being so high up, you can't tell. What you do see, however, is a bit of movement coming towards them. By "movement", I mean the lower branches of the trees are being brushed up against. Regardless of whether it was the fight, or the flash of light, something's attention was caught, and it's being more stealthy.
As for the other creature, you can't see it. You see movement in the brush, but there's nothing there other than noise. It sounds like there's a fight going on down there, but you don't know to what end. You think you'd have to get dangerously close to see exactly what was going on. At any rate, it's not coming any closer to the mansion. At least not right now. Whatever it is, it's not as big as whatever the demons fought.
Going as high as you do, you can see more of the island.
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With the sun starting to set (a Survival check will tell someone it's around 19:00 hours), the terrain is looking darker. You do see in the very, very far distance what looks to be a tower.
On the rocky hill area, between the ridges and the rougher standing areas, you think you see a couple of giants. One in the middle, one to the far North. Again, like the creature you saw fighting the demons, their skin seems to shimmer slightly in the sunlight.
In the middle of the lake, you see what looks to be a small boat, and someone standing in it, going north-bound.
Other than that, you can't really see anything of note. You know you'd have to get closer to the tops of the trees to really see anything.
You do take note that there is a set of stone stairs that lead down from the cliff-face. If you hadn't been flying above them, you might have missed them as they blend perfectly into the rock. For those that can't fly, they can climb down the 80 ft set of stairs. They look like they'd have no problem supporting something that was large-sized.
During this time, everyone feels another earth quake.