🏡 Your Essential Real Estate Glossary: Key Terms Every Florida Homebuyer Should Know
Navigating Florida’s real estate market comes with its own unique terminology, from flood zones to homeowners' associations. Here’s a handy guide to help you feel confident during your home‑buying journey:
1. Escrow
In Florida, escrow refers to a neutral third party (often a title company or attorney) holding your earnest money and documents until all conditions of the purchase contract are met.
2. Appraisal
A licensed appraiser evaluates the home’s market value. Lenders require this to ensure the loan amount doesn’t exceed value, especially important in areas with volatile coastal demand.
3. Closing Costs
These include fees for title search, title insurance, recording, realtor commissions, property taxes, and sometimes homeowners’ association (HOA) transfer fees. In Florida, buyers typically see them between 2–5% of the purchase price.
4. Title Insurance
Protects against past issues affecting ownership—like liens or undisclosed heirs. Florida lenders also typically require it, and an added "owner’s policy" is strongly recommended to protect your investment long term.
5. Pre‑Approval
Before you shop, a lender reviews your finances and credit to issue a pre‑approval letter. This strengthens your position when competing in Florida’s fast-paced markets like Naples, Cape Coral, Fort Myers or Bonita Springs.
6. Multiple Listing Service (MLS)
All licensed Florida agents use the MLS to list and search properties. Expect live updates on newly listed waterfront homes or inland fixer‑uppers.
7. Home Inspection
A licensed home inspector checks the property’s condition—roof, HVAC, plumbing, electrical, and structural systems. In Florida, many buyers also add specialized inspections (e.g., flood‑risk, mold, stucco/EIFS, wind mitigation).
8. Contingency
A condition that must be satisfied for the deal to continue. Common contingencies in Florida include:
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Inspection contingency
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Financing contingency
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Appraisal contingency
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Flood‑insurance contingency (especially when in designated flood zones)
9. Down Payment
The cash you put toward the home’s purchase price. Florida buyers typically put down 3–20%, depending on loan type (FHA, VA, conventional). Seasonal residents or investors may choose higher down payments to strengthen loan terms.
10. Closing
Also known as settlement, this is when you:
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Sign all purchase and mortgage documents
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Pay remaining closing costs and down payment
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Officially receive the keys to your new home
11. Wind Mitigation Inspection
A Florida‑specific inspection that identifies features (e.g., hurricane‑rated windows, roof straps) that can earn discounts on wind/hurricane insurance premiums.
12. Flood Zone & Flood Insurance
Homes in Special Flood Hazard Areas (SFHAs) must obtain flood insurance—often separate from standard homeowners insurance. Ask your agent or insurance provider to confirm flood zone designation and requirements.
13. Association (HOA/Condo) Disclosures
Many Florida communities are governed by homeowners’ or condominium associations. Review the association’s financials, meeting minutes, rules, and reserves before closing.
14. Due Diligence Period
Unlike some states, Florida gives buyers a specified window (per contract) to inspect the property, review HOA docs, and address issues—typically 10–15 days. You may walk away during this period if a contingency isn’t met.
15. Survey
A boundary map prepared by a licensed surveyor. Florida buyers often order surveys to confirm property lines, check for encroachments, and protect against title issues. Lenders may require a survey "certified to the title company."
16. Homeowners Insurance
A comprehensive policy (commonly bundled as HO‑3) covering structure, liability, and contents. Coastal and hurricane‑risk properties may require additional wind, hail, or flood coverage.
Why This Matters in Florida
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Hurricane season awareness: Inspections and insurance are crucial from June to November.
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Water‑related risks: Flood zoning, wind mitigation, and insurance options can affect both purchase and ongoing costs.
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Active resale market: Many homes are seasonal or investment properties, making pre‑approvals and strong offers key in bidding.
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Community restrictions: HOA and condo rules can vary widely; always review governing documents early.
Bottom Line
By understanding these Florida‑centric terms, you’ll be well‑prepared to navigate the housing market—from coastal bungalows to inland family homes. If you're ready, I can connect you with local experts, insurance options, or lenders familiar with Florida’s nuances.
Thinking about buying or selling in Naples?
Protect your investment with a trusted local expert by your side.
📞 Call Brian J Giacomello at 239-281-5269
📧 Email: [email protected]
William Raveis Real Estate | 720 5th Ave S. #201 Naples FL 34102
