Dům se nachází v okolí města.

Dům means house. Here it is in the nominative singular, because it is the subject of the sentence — the thing being talked about.

The dictionary form is dům.

In this sentence, nacházet se is a common Czech verb meaning to be located or to be situated.

So:

• nacházet = to find / to be finding in some contexts
• nacházet se = to be located

The se is part of the reflexive form of the verb here. You should learn nacházet se as a set phrase meaning to be situated / located, not as a literal word-for-word equivalent of English self.

Czech often uses nacházet se when talking about location in a slightly more formal or descriptive way.

So:

• Dům je v okolí města. = The house is in the area around the town.
• Dům se nachází v okolí města. = The house is located in the area around the town.

Both are possible, but se nachází sounds a bit more formal, neutral-descriptive, or written.

v okolí means in the vicinity of, in the area around, or near.

The noun is okolí, which means surroundings, vicinity, or surrounding area.

So:

• v okolí města = in the area around the town/city

This is a very common expression in Czech.

Because okolí requires the genitive case for the thing whose surroundings you mean.

So:

• město = town/city nominative
• města = of the town/city genitive singular

Literally, v okolí města is something like in the surroundings of the town/city.

That is why města is used.

The preposition v usually means in.

Here it combines with okolí to form the common phrase:

• v okolí = in the vicinity / in the surrounding area

So the structure is:

• v
  • location expression
• okolí
  • genitive noun

That gives:

• v okolí města = in the vicinity of the town/city

It can be either town or city, depending on context.

Czech město covers both ideas more broadly than English sometimes does. Without more context, either translation may be correct:

• in the vicinity of the town
• in the vicinity of the city

If the place is known, context will tell you which sounds more natural.

Yes. Czech word order is flexible, although not completely free.

The neutral order here is:

• Dům se nachází v okolí města.

You could also hear or read:

• V okolí města se nachází dům.

This shifts the focus more toward the location first. In English, word order is much stricter, but in Czech word order often reflects emphasis or information structure.

Yes, nachází is present tense, third person singular: he/she/it is located.

The infinitive is:

• nacházet se

Related forms:

• nacházím se = I am located
• nacházíš se = you are located
• nachází se = he/she/it is located

Since dům is singular, nachází se matches it.

Yes, it is natural, but it sounds a bit more formal or descriptive than plain everyday speech.

In casual conversation, people might more often say:

• Dům je u města. = The house is near the town.
• Dům je poblíž města. = The house is near the town.
• Dům je v okolí města. = The house is in the area around the town.

Dům se nachází v okolí města is perfectly natural, especially in written descriptions, real-estate language, guides, or formal speech.

A rough pronunciation guide for an English speaker is:

• Dům ≈ doom
• se ≈ seh
• nachází ≈ na-KHAA-zhee
• v ≈ very short v
• okolí ≈ OH-koh-lee
• města ≈ approximately MYES-ta

A few useful notes:

• ů is pronounced like a long oo
• ch in Czech is like the ch in German Bach or Scottish loch
• á is a long vowel
• ž sounds like the s in measure
• ě changes the sound of the preceding consonant, which is why mě is not pronounced exactly like plain me

Yes, you could, because nalézat se can also mean to be located, but it sounds more formal or literary than nacházet se.

So:

• Dům se nachází v okolí města. = normal formal/neutral
• Dům se nalézá v okolí města. = more elevated, bookish, or official

For most learners, nacházet se is the more useful everyday choice.