When buying your home, especially if you are looking in the newer communities that are focused on offering a plethora of amenities such as community pools, parks, and recreation areas that are both attractive and convenient to have so close to home there are some key terms that might be hard to understand. If you've been doing your research, you may have asked yourself "what is a CDD?". We thought it might be fun to explain just what it is in 100 words or less. So, here we go…
CDD stands for Community Development District and involves an additional fee levied by the developer of a neighborhood to finance the cost of the amenities within the neighborhood. CDD fees are collected annually and are incorporated into your property tax bill, making it a fee that is incorporated into your monthly mortgage (rather than something separate you will need to pay). So when comparing homes and communities it is important to know what all is included and the additional costs associated with those beautiful amenities in the community.
So there you have it, 88 words. Bam!
You can find out information on more words like this when gearing up to buy a home in 10 real estate terms every first time homebuyer should know. We hope these definitions will help you when buying a first home in Central Florida.