How is the resale price of a home determined? KulshanCLT’s resale formula allows homeowners to predict the maximum resale price of their home. The homeowner earns 1.5% per year in compound interest on their basis (original mortgage amount plus downpayment). At resale, the homeowner recaptures their downpayment, mortgage principal payments, and the value of certain improvements. The value of neglected maintenance or damage may be subtracted from the resale price.

Resales - the shared equity approach

KulshanCLT's shared equity approach used in resales balances the need of the homeowner for a reasonable rate of return on their investment and the need of the community to retain affordable homeownership for every future homebuyer.