Since the 1930s, Community Land Trusts (CLTs) have been creating and maintaining affordable housing options globally. However, there are still plenty of myths and misconceptions surrounding CLTs.
One of the biggest misconceptions that First Homes encounters is that our Director of the CLT, an on-staff realtor who manages the sale and purchase of CLT homes, earns commission from the sales of CLT homes; but that’s not accurate.
First Homes’ CLT Director Doesn’t Make Commission
The First Homes CLT Director works for First Homes, the non-profit which manages the CLT, rather than as an independent agent; this means they are paid a salary by First Homes and don’t make commission from CLT property sales.
Why Doesn’t the CLT Director Make Commission?
The historic perception of First Homes’ CLT Director is that they have exclusive access to an inventory of homes that they can resell again and again, therefore earning commission on homes that are deprived from other realtors. It’s understandable that this feels unfair to real estate agents. In fact, that is one of the reasons the CLT Director is a salaried position rather than commission based. The other reason is that the CLT Director’s goal is to best serve qualifying homeowners; having commission on the line would interfere with that mission.
Why Does First Homes Employ a CLT Director?
Selling a CLT home requires a different process than that used for market rate houses. Real estate agents selling market rate homes may not have the expertise to manage this ever-changing process; that’s why we employ own realtor who will learn, stay updated with, and put the process into practice. This ensures that all CLT homeowners and buyers have the best experience possible.
A Shared Mission
In the end, real estate agents and First Homes only want what’s best for those they serve; misconceptions like this can limit our cooperative power.
Have questions about CLTs or CLT homes for sale? Contact First Homes at 507.287.7117 for more information today!