While choosing a location for a modern story is not simple, it is easier then creating and naming locations. Cities like Chicago and New York already have names. If creating a fictitious small town, one can look at the real cities in the area and make a determination. Science fiction and fantasy, not set in real places, are more difficult.
    After a frustrating lack of ideas for naming places in my futuristic science fiction, an idea came to me. My family has a Scrabble game. I found the box and set it up. This Scrabble version came with a nice drawstring bag. (A baggie or bowl will work just fine.) I placed all the tiles in the bag and shook them up. Then I removed a random number of letters. (If you need a number, get out three standard dice from another board game and roll them.) I set the pieces on the board. It required adding a vowel here, or there, and a little rearranging, but I created some unique names.
    It is even possible without a Scrabble board. Cut  paper, either typing or notebook, into small squares. 1 inch square or less (or 2 1/2 cm square or less.) Write a letter on each square. Make more then one set of letters. I recommend at least 5 of each of the basic letters. Vowels should be more. Since more, or less, of a letter changes the odds of that letter being pulled, I recommend adjusting the letters for your needs. (If your alien language has a lot of Ys, I recommend including a lot of Ys.)
    While very useful, the above is not always practical. It is time consuming.
    Another option, which requires less time, and no small pieces, is an on-line translator program. (http://www.stars21.com/translator/english_to_latin.html) The link has options for a number of languages.
    While Latin tends to be overused, there are a number of different options. It depends on your story.
    Open the link and chose a language. (It needs to use the right alphabet. Not all languages use the same one.) For this example, I chose Irish. I typed in “home” and clicked the button. Baile may, or may, not work. Sometimes it takes a few tries to find a word that fits. (Please remember to give credit to the site. On-line translators might not be 100% accurate. Please have it checked prior to publication.)
    Something to remember, whether creating names, or selecting words from other languages, is pronunciation. X!x is not a very pronounceable word. Whereas Xerxal is odd, but at least the reader should have some idea how to pronounce it. It also helps to provide a pronunciation key. The goal is to present something readers wants to read.