Davie Real Estate Glossary
Key terms every buyer and seller should understand before entering the Davie market. Plain-English definitions with local context — no industry jargon left unexplained.
A
Appraisal
A professional estimate of a property’s market value conducted by a licensed, independent appraiser. Lenders require an appraisal before finalizing a mortgage to ensure the property is worth the loan amount. If the appraisal comes in below the agreed purchase price, the buyer and seller must renegotiate or the buyer must cover the difference.
In Davie: Properties on large lots or with equestrian improvements can sometimes appraise differently than standard subdivisions. A knowledgeable agent will prepare an appraisal package with comparable sales to support value — especially in luxury price ranges.
Assessed Value
The dollar value assigned to your property by the county property appraiser for the purpose of calculating property taxes. Assessed value is often lower than market value, especially for long-time homeowners who benefit from Florida’s Save Our Homes cap on annual assessment increases.
In Davie: The Broward County Property Appraiser (BCPA) handles all Davie assessments. You can look up any property’s assessed value, exemptions, and tax history on their portal.
As-Is Contract
A purchase agreement in which the seller is not obligated to make any repairs to the property. The buyer still has the right to inspect the home during the inspection period and can cancel if issues are discovered — but the seller is under no obligation to fix anything. This is the most common contract form used in South Florida.
In Davie: Most resale transactions in Davie use the Florida Realtors/Florida Bar “AS-IS” contract. Buyers should still always conduct a thorough inspection, especially on older Davie homes built before the updated wind codes.
B
Broker Associate
A real estate professional who has earned a broker’s license but chooses to work under another broker’s supervision rather than operating independently. A broker associate has completed additional education and experience requirements beyond the standard sales associate license.
In Davie: When choosing an agent, working with a Broker Associate means you’re hiring someone with a higher level of licensing, education, and accountability.
Buyer’s Agent
A real estate agent who represents the interests of the buyer throughout the home-buying process. Your buyer’s agent helps you find suitable properties, write competitive offers, negotiate terms, coordinate inspections, and guide you to the closing table. In Florida, agency relationships must be disclosed in writing.
In Davie: A buyer’s agent who knows the Davie neighborhoods can help you understand the differences between gated communities, equestrian zones, and more traditional subdivisions.
C
CDD (Community Development District)
A special-purpose taxing district created to finance the infrastructure of a new community — including roads, water management, parks, and amenities. CDD fees appear as a separate line item on your annual tax bill and typically run for 15–30 years until the bonds are paid off.
In Davie: Some newer Davie developments carry CDD assessments in addition to HOA dues. Always ask for a full breakdown of CDD fees before purchasing so you understand your true annual cost of ownership.
Closing Costs
The fees and expenses paid at the closing of a real estate transaction, above and beyond the purchase price. These typically include lender fees, title insurance, recording fees, documentary stamps, and prorated taxes. In Florida, buyers and sellers each have customary costs they are expected to cover.
In Davie: Closing costs in Broward County typically range from 2–4% of the purchase price for buyers and 6–8% for sellers (including commission). Florida documentary stamp tax is $0.70 per $100 of the sale price.
CMA (Comparative Market Analysis)
A detailed report prepared by a real estate agent that compares your property to recently sold, currently active, and expired listings in the area. A CMA is used to determine a realistic listing price for sellers or a competitive offer price for buyers. It is not the same as a formal appraisal but uses similar methodology.
In Davie: Because Davie has such diverse property types — from half-acre equestrian lots to gated townhomes — a CMA must be prepared by someone who truly understands the micro-markets. Check current Davie market data for trends.
D
Days on Market (DOM)
The number of calendar days a property has been actively listed for sale on the MLS. DOM is a key indicator of market conditions — a low average DOM signals a seller’s market, while a high average DOM suggests buyers have more negotiating power. It resets if a listing is withdrawn and relisted.
In Davie: Track current DOM averages on the Davie market data page. Luxury properties and homes on acreage typically carry longer DOM than standard single-family homes in subdivisions.
Deed
A legal document that officially transfers ownership (title) of real property from one party to another. In Florida, the most common types are the warranty deed, which guarantees clear title, and the quitclaim deed, which transfers whatever interest the grantor holds without guarantees. The deed is recorded with the county after closing.
In Davie: All Davie property deeds are recorded with the Broward County Records Division. Your title company handles preparation and recording as part of the closing process.
Dual Agency
A situation in which a single agent or brokerage represents both the buyer and the seller in the same transaction. In Florida, dual agency (called “transaction broker” status) is legal but must be disclosed. In this arrangement, the agent provides a limited, neutral service rather than full advocacy for either party.
In Davie: You always have the right to your own dedicated representation. If you are uncertain about agency relationships, ask your agent to explain the Transaction Broker Notice before signing.
E
Earnest Money Deposit (EMD)
A good-faith deposit submitted by the buyer when an offer is accepted, demonstrating serious intent to purchase. The deposit is held in an escrow account — typically by the listing brokerage or title company — and is applied toward the purchase price at closing. If the buyer defaults, the seller may be entitled to keep the deposit.
In Davie: EMD amounts in Davie generally range from 1–3% of the purchase price. In competitive multiple-offer situations, a larger deposit can signal a stronger buyer.
Equity
The difference between your home’s current market value and the remaining balance on your mortgage. Equity builds over time as you pay down your loan and as property values appreciate. Homeowners can access equity through a sale, refinance, or home equity line of credit (HELOC).
In Davie: Many long-time Davie homeowners have significant equity built up due to steady appreciation. A current market analysis can help you understand your equity position.
Escrow
A neutral third-party arrangement in which funds, documents, or other assets are held until all conditions of a real estate transaction are satisfied. In Florida, the title company or attorney typically acts as the escrow agent. Escrow protects both buyer and seller by ensuring no money or property changes hands prematurely.
In Davie: Your earnest money deposit will be held in escrow from the time the contract is executed until closing or contract termination.
Expired Listing
A property that was listed for sale on the MLS but did not sell before the listing agreement between the seller and the agent expired. Expired listings often indicate pricing issues, poor marketing, or unfavorable market conditions during the listing period.
In Davie: If your home previously expired without selling, a fresh strategy can make the difference. Learn about re-listing expired properties in Davie with an updated approach.
F
Flood Zone (AE, X, VE)
A geographic area classified by FEMA based on its statistical risk of flooding. Zone X (shaded or unshaded) carries minimal risk, Zone AE is a high-risk area with established base flood elevations, and Zone VE indicates coastal high-hazard areas. Properties in high-risk zones typically require flood insurance if financed with a federally backed mortgage.
In Davie: Davie sits in western Broward County, and flood zones vary significantly by neighborhood. Some areas along canals or near the Everglades conservation levees fall in AE zones. Always check the FEMA Flood Map Service Center before purchasing.
G
Guard-Gated Community
A residential community with a staffed gatehouse where security personnel control entry and verify visitors. Guard-gated communities offer a higher level of security and exclusivity than standard electronically gated neighborhoods. They often feature resort-style amenities and well-maintained common areas.
In Davie: Several of Davie’s most desirable communities are guard-gated, including enclaves in the top neighborhoods. These communities command premium pricing and tend to hold value well. Explore Davie luxury homes for current options.
H
HOA (Homeowners Association)
An organization that governs a residential community, enforces community rules (CC&Rs), and collects monthly or quarterly dues used to maintain shared amenities, landscaping, and common areas. Before purchasing in an HOA community, Florida law requires the buyer receive and review the HOA documents, including financials and rules.
In Davie: Most subdivisions and gated communities in Davie have an HOA. Dues vary widely — from under $100/month in some neighborhoods to over $500/month in full-amenity guard-gated communities. The Town of Davie maintains resources for HOA-related inquiries.
Homestead Exemption
A Florida tax benefit that reduces the taxable value of your primary residence by up to $50,000, resulting in meaningful property tax savings. To qualify, you must own the property, make it your permanent residence, and file by March 1 of the tax year. Homestead also provides the Save Our Homes cap, limiting assessed value increases to 3% per year.
In Davie: Filing your homestead exemption through the Broward County Property Appraiser is one of the most important steps after purchasing a home in Davie. Failure to file can cost you thousands per year in additional taxes.
I
Inspection Period
The contractual window — typically 10 to 15 days in Florida — during which the buyer has the right to conduct inspections of the property. During this period, the buyer can hire licensed inspectors to evaluate the home’s structure, roof, plumbing, electrical, HVAC, and more. Under an AS-IS contract, the buyer can cancel for any reason during this period and receive their deposit back.
In Davie: Davie buyers should strongly consider adding a septic inspection (many Davie homes are on septic rather than sewer), well water testing where applicable, and a wind mitigation inspection during this period.
L
List Price vs Sale Price Ratio (SP/LP)
A metric expressed as a percentage that compares the final sale price of a property to its original list price. An SP/LP ratio above 100% means homes are selling for more than asking price, indicating a strong seller’s market. A ratio below 100% suggests room for buyer negotiation.
In Davie: Current SP/LP ratios for Davie vary by price range and neighborhood. Track the latest data on the Davie market data page to calibrate your offer or listing strategy.
Listing Agent
The real estate agent who represents the seller, markets the property, and manages the sale from listing through closing. The listing agent’s responsibilities include pricing strategy, professional photography, MLS syndication, showing coordination, offer negotiation, and transaction management.
In Davie: Choosing the right listing agent in Davie means finding someone with deep local knowledge — someone who understands the difference in value between a standard lot and a half-acre equestrian parcel, or between a community with a CDD and one without.
M
MLS (Multiple Listing Service)
A comprehensive database used by licensed real estate professionals to share property listings, access sales data, and track market activity. In Broward County, agents use the BeachesMLS (formerly the Greater Fort Lauderdale MLS). Listing on the MLS gives a property maximum exposure to cooperating agents and their buyers.
In Davie: All actively marketed Davie properties should be listed on the BeachesMLS. Data from the MLS powers the statistics on the Davie market data page.
Mortgage Pre-Approval
A written commitment from a lender stating the maximum loan amount a buyer qualifies for, based on verified income, assets, credit, and employment. Pre-approval is stronger than pre-qualification and tells sellers you are a serious, financially vetted buyer. Most sellers in competitive markets will not consider offers without pre-approval.
In Davie: In a competitive Davie market, having a pre-approval letter (or proof of funds for cash buyers) ready before touring homes puts you in the strongest position to win when the right property appears.
P
Price Per Square Foot (PPSF)
A common valuation metric calculated by dividing a property’s sale price (or list price) by its total air-conditioned living area in square feet. PPSF allows for more apples-to-apples comparisons between properties of different sizes, though it should always be considered alongside other factors like lot size, condition, and location.
In Davie: PPSF varies significantly across Davie — from more affordable areas to premium guard-gated communities. View current averages on the Davie market data page.
Property Tax
An annual tax levied by local government bodies based on the assessed value of your property. In Florida, property taxes fund schools, municipal services, fire rescue, libraries, and other public services. Your total tax bill reflects rates set by the county, city/town, school board, and any special districts.
In Davie: Davie property owners pay taxes to Broward County, the Town of Davie, the school board, and applicable special districts. Look up any Davie property’s tax bill at the Broward County Property Appraiser. Don’t forget to file your Homestead Exemption to reduce your bill.
R
REALTOR®
A licensed real estate professional who is an active member of the National Association of REALTORS® (NAR) and adheres to its strict Code of Ethics. Not every licensed agent is a REALTOR — the designation requires membership, ongoing education, and a commitment to ethical practice. The term REALTOR is a registered trademark.
In Davie: When hiring an agent for a Davie transaction, choosing a REALTOR means working with someone held to a higher ethical standard and with access to additional professional resources.
S
Sale Pending / Under Contract
A property status indicating the seller has accepted a buyer’s offer and the transaction is in progress but has not yet closed. During this period, the buyer is typically completing inspections, securing financing, and satisfying other contract contingencies. The home is generally no longer available for showings, though backup offers may still be accepted.
In Davie: When a Davie home goes “pending,” it typically takes 30–45 days to reach closing, depending on the financing type and contract terms.
Seller’s Disclosure
A document in which the property owner discloses known material defects, past repairs, insurance claims, and other issues that could affect the property’s value or desirability. In Florida, sellers are required to disclose known material facts — failure to do so can result in legal liability after closing.
In Davie: Common disclosure items in Davie include past hurricane damage, Chinese drywall (in certain-era homes), septic system issues, well water quality, and flood history. Always read the disclosure carefully and ask follow-up questions.
Short Sale
A sale in which a property is sold for less than the amount the owner still owes on the mortgage. The lender must approve the sale, which can add significant time to the transaction — often 60 to 120+ days. Short sales are an alternative to foreclosure and can allow sellers to exit a difficult financial situation with less credit damage.
In Davie: Short sale inventory in Davie has decreased significantly since the market recovery, but opportunities still arise. These transactions require patience and an experienced agent who understands the lender negotiation process.
School Zoning
The assignment of a property to specific public schools based on its geographic location. School zoning can significantly affect property values and is a top consideration for families when choosing a home. Zoning assignments can change from year to year based on enrollment and redistricting.
In Davie: Davie is served by Broward County Public Schools. Verify current school assignments for any Davie address using the BCPS School Finder. Popular school zones often command price premiums.
T
Title Insurance
An insurance policy that protects the buyer and/or lender against losses arising from defects in the property’s title — such as undisclosed liens, ownership disputes, or recording errors. In Florida, it is customary in Broward County for the seller to pay for the owner’s title insurance policy. Title insurance is a one-time premium paid at closing.
In Davie: Title searches on Davie properties sometimes uncover older liens or unreleased mortgages, especially on properties that have changed hands multiple times. Title insurance gives you peace of mind that your ownership is protected.
W
Wind Mitigation
A specialized inspection that documents the wind-resistant features of a home, including roof shape, roof covering, roof deck attachment, roof-to-wall connections, opening protection (hurricane shutters or impact windows), and secondary water resistance. Insurance companies use this report to determine eligibility for premium discounts — often saving homeowners hundreds or even thousands of dollars per year.
In Davie: A wind mitigation inspection is one of the smartest investments a Davie homeowner can make. Many Davie homes built or re-roofed after the 2001 Florida Building Code update qualify for substantial insurance credits. The inspection typically costs $75–$150 and can save multiples of that annually.
Z
Zoning (Agricultural, Residential, Commercial)
Local land-use regulations established by the Town of Davie that dictate how a property can be used. Zoning designations determine whether land can be used for residential homes, agricultural purposes (including horses and livestock), commercial businesses, or mixed uses. Zoning also governs building setbacks, lot coverage, and density.
In Davie: Davie is unique in Broward County for its agricultural zoning, which allows horses and livestock on qualifying properties. If you’re looking for an equestrian property, confirm the zoning allows your intended use. The Davie neighborhoods guide highlights areas known for agricultural and equestrian zoning.
Have a Question About Buying or Selling in Davie?
Whether you’re a first-time buyer learning the vocabulary or a seasoned homeowner preparing to sell, I’m here to help you navigate every step with clarity and confidence.