The Liberty Falls Collection wasn't originally intended to be used with model railroads (as far as I know, anyway :), and not all of the buildings are even exactly the same scale, but by and large the scale seems to be about 1:160, which is close to railroad enthusiasts' N-Scale. And most Liberty Falls pieces are a lot less expensive.
The following photo was sent to me by one of my customers. The yellow building in the middle is an N-Scale building from a hobby store that cost $20.00. The buildings on either side are the Liberty Falls Sinclair Hotel and Civil War Veterans Home, available from my main store page for $5.00 and $3.00, respectively:
Whether or not Liberty Falls pieces have a place in your railroad setup is something for you to decide, but these are comments from some of my other customers:
I do not know why N gauge modelers have not picked up on [Liberty Falls] but if they ever do, the price may go up. You should place these on eBay in the N gauge train section, who knows? I see them on eBay but the shipping charge is way too much. - R.M.
I used them on my N gauge train layout, they are almost same size as N gauge scale buildings and much cheaper. - R.M.
I stumbled upon these and thought they might work with my N scale model trains, they work great. I would like to build a whole city around the trains using these. - T.W.
That was more than kind of you to include additional lamp posts. You're right, you can never have too many. I am setting up a little Liberty Falls village incorporating N Scale train figures. I'm having a lot of fun. - D.N.
The Liberty Falls ornament sets (L01, L02, L03, and L04) contain buildings that are about an inch tall, and have been found to be the perfect size by enthusiasts of Z-Scale railroading. Each box of ornaments contains six different buildings.