What Does It Mean When a Home is Under Contract in the LBI Real Estate Market?
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Pending Sales vs. Active Under Contract Sales in the LBI Real Estate Market 
Pending Sales vs. Active Under Contract Sales in the LBI Real Estate Market 
Pending Sales vs. Active Under Contract Sales in the LBI Real Estate Market
Long Beach Island Real Estate
When entering into a Long Beach Island real estate transaction, there are several different classifications for the status of a home. All buyers and sellers in the LBI real estate market should be familiar with these classifications to better understand the actual state of a home listed for sale. Some of the property classifications are obvious. For example, a closed status means the home has been sold, but others are more ambiguous. Chief among these less understood terms are:
- Active Under Contract
- Pending
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Pending Sales vs. Active Under Contract Sales in the LBI Real Estate Market
On the surface, both of these designations indicate that a home has accepted an offer, which is true, but the similarities end there. Different rules for each property classification create opportunities for some buyers and sellers in the LBI real estate market. Per our own MLS as of the date of, a home that is Active Under Contract is defined as a “listing has an Agreement of Sale with contingencies or a rental application has been received. Property is available to show and accept backup offers or additional applications.” Our MLS defines a Pending sale as a “Listing has an accepted contract (Agreement of Sale) or pending lease agreement and has not closed. Seller/Landlord does not want showings or back up contracts/applications.”
So, what does all this mean? While each situation will vary based on the listing agent and the seller’s wishes, there are some general conclusions that we can draw. A home classified as “Active Under Contract” will often have an accepted offer, but contingencies will be involved. A few examples of these are attorney review, a mortgage commitment, home inspection, and a home sale contingency, while uncommon in the LBI real estate market. A buyer can usually submit an offer when a home is in this category as a backup offer, and, in some cases, the seller might even be free to accept the offer. A house that is Pending is often time more of a “done deal.” While a home that is in Pending may come back on the market, the reasons tend to be more serious. An example of this would be a buyer not getting a mortgage commitment or serious home inspection issues.
What Does It Mean When a Home is Under Contract in the LBI Real Estate Market?
Buyers, sellers, and their LBI real estate agents should be familiar with these different classifications and should not be afraid to ask questions. Suppose a buyer is interested in a home classified as Active Under Contract or as Pending. In that case, a simple phone call can shed light on the actual statutes and determine if there is an opportunity to present an offer. Sellers should also be aware of these classifications in the event they are presented with another offer. Buying or selling a home in the Long Beach Island real estate market involves understanding the market and how a home is sold. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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