In the theme, you will have 3 options to set the Location option
How to manage the listing location with a dropdown selector
First, you will need to make the necessary settings in Theme Options-Search-Advanced Search settings
These options will apply in the search form for the location field.
You will also need to set the options for the submission form. You will be able to set the City/Area to be a dropdown or a free input field. The option for the submission form can found in Theme Options- Payments & Submit-Listing Submit Page
In the submission form, if the Show cities and areas as dropdowns? is set to Yes, for City/Area, the owner will need to select the values from dropdowns
The values from dropdowns will be added by the admin. Help for Listing categories
If the Show cities and areas as dropdowns? is set to No, for City/Area, the owner will have an input field for City and Area
In the search form, you will have the dropdown for the Location field that will contain City, Area, State, and Country.