How to buy a house in a small town

The first thing most city buyers notice is how much more house their money buys. In Frank's town, the book says, a budget that would get an ordinary tract house in the city could buy the best house in town, from a new home on the golf course to a historic mansion.

For today's numbers, the money guide shows how housing costs compare between big cities and rural areas.

In town or out in the country

Small-town homes come in two basic kinds, and they make for very different lives.

In town, you'll have neighbors close by on a few sides, a yard for the kids and streetlights at night. Kids can often walk to school. It feels a lot like a city neighborhood, only smaller and closer to everything.

On a farm or ranch, you get privacy, quiet and room for horses or other animals. In Frank and Dave's experience, this kind of property often starts only about a mile outside town, so you don't have to give up town services to have it.

Match the land to what you picture. Rolling New England pasture and Southwest mesa country are very different places, and you won't find one in the other.

The biggest difference comes at night. Out in the country it's pitch dark, and the sounds are cows and coyotes instead of passing cars. If you've never lived that way, the book suggests spending a weekend on a farm or at a guest ranch first to see how your family likes it.

Expect mixed-income streets

In Frank and Dave's experience, small towns don't sort themselves into rich and poor neighborhoods the way cities do. There aren't enough people to fill separate neighborhoods, so the whole town is one big mix. The attorney may live next door to the plumber, and the doctor next to the mail carrier.

You might find a street of big Victorian homes, but there will be small houses right behind them. That takes some getting used to if your neighbors have always been a lot like you. The good news, as the book points out, is that keeping up with the Joneses goes out the window.

Four cautions from the book

1. Get a thorough inspection. Many small-town homes are older. A professional inspector is a must, and you'll want a hard look at the classic problems: termites, foundation trouble and asbestos.
2. Stay away from train tracks. Trains can run day and night, and the noise wears on you fast when the tracks are behind your house.
3. Avoid the cheapest housing in town. The book warns against buying near the oldest, lowest-cost apartment complexes. It's too big an adjustment for most families.
4. Negotiate. Asking prices are negotiable here like anywhere else. Don't skip that step, even when you love the house.

See it by day and by night

Once you have a house or two in mind, go back at different times. The book puts it this way: "Often, a property that looks great at 2 pm will take on a whole different feel at 10 pm."

A busy street can seem fine during the workday and turn loud at night. Frank took this a step further. During his due diligence period, he spent a night in a chair in the house he was buying, just to see what living there would really be like.

A few more checks worth making

These steps aren't from the book, but they're common sense for a small-town or rural purchase today. A local real estate agent, inspector or attorney can tell you what's usual where you're buying.

• Well and septic. Many rural homes aren't on city water or sewer. Have the well water tested and the septic system inspected by a professional.
• Flood risk. Look up the address on FEMA's Flood Map Service Center, and ask your insurance agent about flood coverage.
• Internet service. Don't rely on the listing. Search the exact address on the FCC National Broadband Map, then call the providers to confirm they can connect that house.
• Property taxes. Ask the county assessor's or treasurer's office what the taxes are now, and whether they'll change after a sale.
• Land use. If you plan to keep animals or build a barn or workshop, ask the county what's allowed before you buy.

Take your time

Finding a home in a small town can be one of the most exciting parts of the move, because the options are so much better than you're used to. Take your time, check the details and see the house at its worst as well as its best.

If you have school-age kids, read the schools guide before you make an offer, since the school may matter as much as the house.

The free book has Frank and Dave's full chapter on shopping for a small-town home.