You envision the perfect home, but what about the neighborhood?

1. Your Ideal Neighborhood: Most people know what they'd like their dream home to be like, but they give little thought to the neighborhood. Start by defining what your dream neighborhood is like. Can you walk to the downtown area? Do you want to live in a historic neighborhood? Do you want the neighborhood to be family-oriented? Ensure you write out your list of wants so you know what to look for.

2. Public Services: With shrinking revenue, many towns and cities are cutting back on the public services they offer. Parks, libraries and police often get hit first. Drive through a potential neighborhood, and then through the town, and look carefully for clues that the city is having financial trouble. Are the streets clean? Are the parks in good condition? Is the grass cut? Check the library as well. Have they had to cut their hours?

3. Look at Schools: If you have kids, the quality of local schools is a considerable concern. Even if you don't have children or plan on home-schooling, schools still matter simply because when it comes time to sell, your buyers will likely have kids and great schools “usually” equate to great neighborhoods. Research the local schools using sites like GreatSchools.org.

4. Examine Clues: Do you see a lot of pre-existing homes for sale? Does your potential neighborhood have a lot of cheap apartments for rent? Are local businesses shutting down or is business thriving? These are signs that things might be on the decline. Also, picture yourself in the neighborhood. Go through your daily routine to make sure you'll still have the same quality of life. For instance, if you run every morning, are the roads safe enough for your morning jog? If you bike to work, are there bike lanes for you to use? If you love grabbing a cup of coffee, is there a neighborhood coffee shop for you to enjoy? Don't forget to listen. Can you hear noise from the highway or airport? Is there a club or bar nearby that might get annoying at 1 a.m.? These are all important things to consider.

5. Talk to People: Talk to area residents, you’ll be surprised what they tell you! You'll be living next to these people, perhaps for years. Having great neighbors can make or break a neighborhood, so find out how they like living there and what they're like. Remember, you can always make home improvements to your house if there's something you don't like. But changing your neighborhood is not so easy. If the subdivision is part of an HOA, you may want to ensure the HOA is doing its job by enforcing the rules (lawns cut, no broken down cars, no purple fences, etc.).