How to Choose the Right Neighborhood for Your Next Home

Find the Perfect Neighborhood

by Jennifer Case

When choosing a new neighborhood, it is important to consider your personal needs and desires as tastes in neighborhoods are highly subjective.

Determining what’s Important

Before you choose a neighborhood, write down the things that are most important to you and your family.  These can include the quality of the school district, the crime rate, proximity to entertainment and shops, accessibility, property values, and cultural diversity.

Use the Internet

The Internet can be an efficient way to start your neighborhood research. FreddieMac has numerous educational resources for homebuyers. Websites like NeighborhoodScout.com can provide you with a comprehensive look at many neighborhood characteristics such as crime statistics, school performance, and appreciation or depreciation. Your customized list of what is important to you in a neighborhood can help you customize your search for a neighborhood with the amenities you desire.

Another useful website is NabeWise.com, which uses 65 characteristics that are important to the quality of life that people look for when shopping for a neighborhood. This site is especially helpful if you’re having a hard time determining which neighborhood factors should be important you. The site also features photo tours and opinions of those who live in the area.

Spend Some Time Exploring

Researching a neighborhood on the Internet may be a great way for you to learn about what malls are nearby and which schools are well-rated, but if you really want to get a feel for a neighborhood, you should spend a couple of hours in it. Merely doing a ‘drive-thru’ will not accurately represent what living in the neighborhood will feel like. Spend some time walking around, visiting local businesses and speaking to long-time residents. People in the neighborhood can offer insights and particulars that may escape you and your realtor.

What to Look For

While the list of what is important to you in a neighborhood is uniquely your own, there are some objective factors to determine which can help you start the search.

Look at the neighborhood demand by asking whether multiple offers are being made and whether the gap between the prices listed and the sale prices is decreasing.

Look for communities that are likely to become the “it neighborhoods” in the future. Moving into an area that is on the upswing is preferable than moving into one which people are leaving. These neighborhoods are often found in the areas just outside of the most desired neighborhoods.

Consider any additional costs that living in a particular neighborhood may cause you to incur. Does the neighborhood belong to a home owner’s association? Are there associated Home Association fees?

Finding a great home that fits all your needs can be challenging. Finding one in a neighborhood in which you feel at home can make that quest a little easier.