As a real estate agent, you want what is best for your client. This means getting to know their wants, needs, and budget so you can present them to options that will work best. That’s what the Community Land Trust (CLT) offers- an option. Purchasing a CLT home through First Homes isn’t the right choice for everyone, but by understanding what a CLT is, how it works, and the qualifications, you can help your client understand all of their options so they can make the choice that is right for them.
What is a Community Land Trust?
A Community Land Trust (CLT) is a well-established model built around shared equity to create and preserve affordable homeownership. This allows for a cycle of affordability, meaning one home can stay affordable in perpetuity.
How Does Shared Equity Work?
First Homes subsidizes a CLT home to sell it to an income-qualified buyer at a more affordable price. When the owner sells the CLT home, the appraised equity is shared 50/50 with half going to the seller and the other half staying within the home. This continued investment re-subsidizes the home and keeps it affordable for the next buyer, creating a cycle of affordability.
How do I Know if My Client is Income Qualified?
First Homes operates at 80% Area Median Income (AMI.) To be an income-qualified buyer, your client must make at or below 80% AMI. This changes annually. Click here to view the current income limits.
What Types of Houses Does First Homes Buy and Sell?
First Homes purchases homes on the open market to add to the CLT. We buy a variety of homes including single-family detached and town homes, and have the resources to renovate them when necessary. We also build new construction homes using high-quality builders. View our available homes here!
Does a CLT Buyer Own Their Home?
Yes! When your client purchases a CLT home, they own it, build equity, and are responsible for maintenance, taxes, and other traditional homeowner duties.
Does the Director of Community Land Trust Earn Commission?
No. The Director of Community Land Trust does not earn commission for CLT home sales; instead they are a salaried employee of First Homes. Any commission earned goes to the First Homes organization to support its operations.
Do I Still Earn Commission as my Client’s Agent?
Yes. When you represent your client purchasing a CLT home, you still earn commission based on their purchase.
Is Purchasing a CLT Home Right for my Client?
First Homes is not right for everyone. However, if your client is struggling to afford a market-rate home and is income-qualified, First Homes can be a path to homeownership. If you have more questions about First Homes or the CLT, contact us at 507-287-7117!