Jed, David, and Ruth are on target. They'll notice and consider the neighborhood even before they get to the house. And some will make a decision on whether to even go inside based on the neighborhood.
True example: There's a nice cluster of homes--late 1970s, 4/2.5, 1/3 acre lots on what used to be pasture--close to where I live. And there are three ways to drive there. One way is fairly rural, up and down hills, nicely wooded, past some other similar homes. The second way is past a number of horse farms--older houses, lots of acreage, white wooden fences. The third way is past a community of small poorly-built houses from the 1950s--3/1s that originally had outhouses. They're on small lots. Some have cars up on blocks in front. There are lots of plastic children's toys scattered on the lawns.
Any agent familiar with the area will provide directions to bring people in through one of the first two ways--rural and wooded, or rolling horse farms. It sets the right mood. Coming in the third way won't help sell the house or the community.
And once a buyer approaches the specific house, he or she again is looking at the neighbors. Another true story: I know some investors who rehab urban houses. When they're rehabbing, the work on the curb appeal not only of their rehab, but of the neighbors 4-5 houses in either direction on both sides of the street. And that's meant, on occasion (asking beforehand, of course) having their landscaping and lawnmowing crews take care not only of the rehab house, but of the neighbors' houses.
And once a buyer pulls in front of the specific house for sale, it's not just the overall effect and landscaping but whether there's a clear, visible entrance to the house. I've seen a number of houses where you pull up and you really don't know which way to go. Sometimes, there's been an addition to the house. Other times, it's a garage that sticks so far out that it obscures the whole entryway. Most of the time, even with poorly considered construction or design, it's something that could be remedied through landscaping, a defined walkway, a visible door (with surrounding potted plants), and so on.
Hope that helps.