You can tell a lot about a neighborhood by driving through it. Manicured lawns and well-kept homes indicate pride of ownership. Junk cars parked on overgrown lawns and overturned mattresses at the curb are signs of decay. However, if you rely on these indications alone, you could face a rude awakening when you move in.

Not only will meeting the neighbors give you a good idea of whether you will be compatible, but neighbors will disclose material facts that a seller might conveniently forget.

Meeting the Neighbors is Doing Due Diligence
When Gary and Stephen found their dream home, they were ecstatic. It had everything they wanted, location, space, vintage, updates and a quaint yard. The price was right, too. Shortly after signing the contract, the two men drove over to the vacant home to meet the neighbors on both sides. The neighbors to the west told them the basement floods on a regular basis and seemed perturbed that the sump pump drained water into their yard. The seller's disclosures did not mention a wet basement.

The neighbors to the east were blatantly hostile. They pointed to the rose bushes that appeared to be growing on the buyer's property and said they had planted them. Although a fence existed between the two homes, the neighbors on the east said the boundaries were in dispute. They also said, "We smoke like chimneys and plan to sit out on our front porch every night smoking," adding with a smirk, "And there's nothing you can do about it."

It was clear that the neighbors on both sides of this home had a bone to pick with the existing seller, but Gary and Stephen did not believe they should be the recipient of that ongoing battle. The neighbors' reaction was enough to cause Gary and Stephen to buy a different home in another neighborhood.

Neighbors Can Be Unreasonable
Tom and Susan were conducting a home inspection when they met by accident the neighbors from across the street. As their buyer's agent was turning off the lights in the house, she noticed a SUV had driven up on the lawn of this million-dollar home. Tom went outside to investigate.

The driver seemed angry. The agent opened the front door to hear the driver scream at Tom, "That's what you get for parking in front of my driveway." Then the neighbor slammed on the gas pedal, sharply turned the wheel and ground out a foot of lawn with the tires of his SUV.

It wasn't even Tom and Susan's car. It was somebody else's car that had extended about six inches over the neighbor's driveway. Needless to say, Tom and Susan were not about to live across the street from this guy. They canceled the purchase contract.

Questions to Ask Neighbors Before Buying a Home
•How long have you lived in the neighborhood?
•What do you like best about living here?
•What do you like least about the neighborhood?
•If you could change one thing about this street, what would it be?
•Do all the neighbors get along with each other?
•Have you ever noticed anything odd about this house or yours?
•How is the crime in this area -- has anything happened around here?
•How quiet is the neighborhood? Are there nuisances?
•Do you know why the seller is selling this house?
•What has the owner of this house complained about to you?

You'll be surprised what the neighbors might tell you and what you could find out. It might save you from making a terrible buying mistake and moving into a neighborhood where you could be miserable down the road.

When selling your home, if circumstances warrant, make amends with the neighbors before putting that sign in the yard. Because agents like me will always tell the buyers to talk to the neighbors before fully committing to buy.