Understanding Common Long Beach Island New Jersey Real Estate Terms for Buyers and Sellers
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Understanding Common LBI Real Estate Terms 
Understanding Common LBI Real Estate Terms 
Understanding Common LBI Real Estate Terms
Long Beach Island Real Estate
Buying or selling a home in the Long Beach Island NJ real estate market can be a complex process, and understanding real estate terminology is essential to making informed decisions. I have compiled a full list of real estate terms on my website, but to help you navigate the LBI real estate market, I have compiled a list of standard terms with definitions. There are some prevalent terms and some that are more specific to the LBI real estate market and the second home industry.
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
Understanding Common LBI Real Estate Terms
Below is a short list of common LBI real estate terms that buyers and sellers should be aware of. I am happy to go into detail on any of the terms below, and you can also check in on my evolving list of Long Beach Island real estate terms on my website.
New Listings
New listings refer to properties that have recently been added to the market for sale. These can include homes, condos, townhouses or any other type of property for sale in the LBI real estate market.
Pending Sales
A pending sale is a property that has an accepted offer and is currently in the process of closing. This means that all contingencies have been met and the final paperwork is being completed. The deal has not yet closed, but is working towards the closing date. Depending on the nature of the deal, an offer may or may not still be able to be accepted.
Closed Sales
A closed sale refers to a property that has successfully gone through the entire buying/selling process on Long Beach Island and has officially changed ownership. This includes the transfer of funds and title from the seller to the buyer.
Median Sales Price
The median sales price is the middle point for all home prices sold during a specific period of time on Long Beach Island. This means that half of all homes sold during this time were priced above this amount and half were priced below it.
Average Sales Price
The average sales price is calculated by adding up all home prices sold during a specific period of time and dividing by the total number of homes sold. It gives an overall picture of what buyers are paying for homes in the LBI real estate market.
Days on Market
Days on market (DOM) refers to how long a property has been listed for sale before going under contract. The longer a property stays on the market, generally speaking, the more likely it is to sell below its listing price.
Inventory of Homes for Sale
Inventory refers to all properties available for sale at any given time. This can include new listings as well as those that have been on the market for some time. In the LBI real estate market, roughly 5%-10% of “active” listings have an offer or are in some stage of the sales process.
Months Supply of Inventory
Months supply of inventory measures how many months it would take to sell all available inventory if no new properties were added to the market. It’s calculated by dividing current inventory by monthly sales over a specific period. This is a good indicator of where prices in the LBI real estate market are heading.
Flood insurance protects homeowners against damages caused by flooding due to natural disasters like hurricanes or heavy rainstorms. In areas designated as high-risk flood zones by FEMA (Federal Emergency Management Agency), flood insurance may be required by lenders before they approve financing. The cost of insurance should be accounted for when budgeting for a home on Long Beach Island.
Title insurance protects homebuyers against losses related to defects in a property’s title such as liens or disputes over ownership rights. It provides assurance that you are receiving clear title when purchasing real estate.
Mansion tax
The State of New Jersey levies a tax of 1% of the total sales price on transactions over $1,00,000. Since most of the LBI real estate market sales are over $1,000,000, this is an expense that needs to be understood and accounted for.
Understanding Common Long Beach Island New Jersey Real Estate Terms for Buyers and Sellers
Understanding these real estate terms can help you better navigate the home buying or selling process on Long Beach Island. By knowing what each term means, you can make informed decisions about the LBI real estate market as a whole and how it will impact an offer. For more information about buying, selling or investing in the Long Beach Island 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
More LBI Real Estate Information:
All About Long Beach Island New Jersey
LBI Real Estate Earnest Money Deposit