You may get lucky and find the neighborhood of your dreams right away. You’re far more likely, however, to end up evaluating the strengths and weaknesses of several neighborhoods while trying to decide which one to favor with your purchase. If you’re on a budget – and most people are – you may have to compromise and make tradeoffs.

Suppose that one neighborhood has the schools you like, the second is closest to your office (which would save you an hour a day commuting), and the third neighborhood is in a town with a delightful beach. They’re all good neighborhoods. It’s a tough decision.

Prioritize your needs. Buying a home when you have budgetary constraints involves making tradeoffs. For example, if you want to live in the town with great schools and parks, you’ll probably have to settle for a smaller home that you would if you buy in a more average community. When push comes to shove and you have to choose a place to live, you must decide what is most important to you.

Three tips:

1)      Talk to people who live in the neighborhood. In addition to asking how they feel about their neighborhood, see what residents say about the other residents. Ask about parking problems, unfriendly or snobby owners, and so on. Renters are also a great source of information – they don’t have a wad of cash invested in a home, and are generally candid about the shortcomings of a neighborhood. Walk the neighborhood, especially in the evening.

2)      Get days-on-market statistics from your Realtor. The number of days on the market indicates how strong the buyer demand is. Quick sales indicate a popular area, and will be good when you’re ready to re-sell.

3)      Pay for an appraiser to value the neighborhood. They have no vested interest in selling you anything, and can analyze the property values and pricing trends.

Also keep an eye open for these things:

Is there trash on the street?

Are children playing unattended?

Are there cars on blocks?

Are the roofs well kept? Flowers in the yards? Windows and garage doors replaced?

What about the neighborhood convenience store – is there trash in that parking lot?

Would you be comfortable taking a walk at 6pm in the neighborhood?

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