Let the comps do the devils work.  We had this issue with my parents' home.

The comps!  Just the comps!

As you know Seller the average price per square foot in town is $200.00 and here in NE Minot prices have also been rising, now they are up to 50 cents per square foor.

Debbie,

This is why we get paid the big bucks. To handle bombs and land mines

"Other neighborhoods are more in vogue these days."
"The neighborhood's gonna be a challenge."
"What WERE YOU THINKING moving here?"
Well, maybe not the last one. 3:)

You made me laugh out loud with this one Debbie Reynolds .  This is a tricky subject, right up there with telling them their home has an odor(s)

We cannot talk about neigborhoods while talking to a buyer, so I personally would avoid it when talking to a seller.  If they don't know their neighborhood sucks by now, then telling them won't do any good.

Let the comps talk by themselves.

hmm..maybe just present the comps?

I think I would stick to the comparables and leave my opinions, and perhaps others', to myself. Feedback may tell the story.

data speak for themselves Say within 1/4 mile

Very carefully...put a positive spin on it. "What a great area this must have been when you bought here but the growth and development in other areas has resulted in high demand for those neighborhoods"...

wow - Debbie - I can't wait to read these answers!

I would never say that.   I share facts.   

Provide comps 

The word "challenging" seems to get it done pretty good now a days

Other neighborhoods seem to be more popular with buyers because .....

Comparatives tell the whole story IMO

I think that's very hard to do, Debbie, and when I've had listings in such neighborhoods, the sellers really knew that deep down. I'd simply focus on the comps. Besides, in many cases that's a subjective opinion. I've had listings in neighborhoods I thought "sucked" that when priced right and marketed right sold immediately. There's a lid for every pot out there.

Evaluating neighborhoods is a job for the consumer. It's best to steer clear of violating Fair Housing laws.

Comps usually tell all, Abby stiller and  Larry Johnston got this one !!

"A less expensive neighborhood"

Good morning Debbie. Not sure why that is necessary, don't they already know their neighborhood. it is all about price as you well know.

Debbie, as Mary stated, the comps say it all, and you don't have to say anything.

Neighborhoods have change over the years.

Good morning Debbie,

You do not, the seller already knows:)

Already some great answers and I agree to let the comps speak for you.

There are a lot of ways to talk about the LOCATION of the home. In my area it's all about how close to the ocean you are. Someone else might be too close to the highway. Or be in an older neighborhood and your seller is the newest house. Or is the only stick built in a subdivision with manufactured homes. Plus, I don't think "sucks" is part of an appraiser's language.

Comps don't lie (unless Zillow provides them). 

Debbie,

I would show the comps and mention that this neighborhood is not in the hot areas according to buyers today.  A

there is no nice way.....

Well, plenty of people buy and sell homes in neighborhoods we consider less than stellar, so there's that...just show 'em the comps and let them draw their own conclusions.  It's all subjective, anyway. 

Like selling a car; there is a seat for every arse or an arse for every seat so it goes with a neighborhood. It is not for us to judge but showings in the end will dictate price!

I don't.

Not my position in life to cast judgment on the conditions of life under which others live.

However, if the seller thinks they live in Snobs Hill, I will let the numbers do the talking and set forth correct expectations.

If there is no compelling motivation reason to sell, contracting with a delusional seller will prove frustrating but not necessarily without profit.

Next!! 

Perhaps through "another's eye"? Perception is... They probably know it already anyway, so to tell them otherwise might jeopardize your credibility.

Debbie Reynolds As already mentioned here, comps don't lie.

I would not take a listing that I feel will not sell.

The comparable sales!

The comps will tell the story.

Hi Debbie, I think that being honest and telling like it is is best, specially when there are things out of our or the sellers control.

Why does it suck? What is affecting it?

Understanding the 4 stages of neighborhood life - Growth, Stability, Decline, Renewal will help you determine why this subdivision SUCKS.

Assuming is going through a declining phase, I would use things like:

-Your neighborhood is going through some challenges that neither you as the homeowner nor I can control.

-Neighborhood is going through a declining phase.

-There is not enough pride of ownership in your neighborhood.

-The rental % is high in the neighborhood and affecting the look and feel.

-High foreclosure rate.

Finding out the REASON as to why a neighborhood is not at its best is key and letting your seller know the facts about their neighborhood and how it can affect the home's price, DOM, etc is critical and will give a real picture or idea of selling time frame.

Plan 1. Take a ride around. Plan 2. turn on the police scanner. Plan 3. determine how emotional the seller is to not offend them. 

"You might want to come back here at varied times and make some observations".  OR  "SO... what do YOU think about this neighborhood?".  Sometimes just the question will give them insight to move on.

My two go to's

 "Let me take my Realtor hat off for a minute, now I'm just a citizen of San Diego chatting here..."

1.It's a great neighborhood, yes;  I wouldn't walk my dog at night here personally.

2. It's a great neighborhood, yes; but I wouldn't sell my single sister a home in it personally.

(I do not say anything else or explain why except for data, comps & numbers).

Bonus Comment: Based on the comps, I'd find it to be a challenge to re-sell it when the time comes, and I want to be your listing agent one day, so I'd prefer to resale in a different area with better equity growth.

Either a CMA showing declining values and/or crime reports. The data would speak instead of you.