Sample of Resale
Land Trust Homeownership: Example of a Resale
How is the resale price of a home determined? The price of the house is tied to the appreciation In Area Median Income. Example:
—Initial Median Income in 2014 for Family of 4 at 100% AMI: $82,600
5 years later in 2019
—Median Income in 2019 for Family of 4 at 100% AMI: $93,300
Change in Median Income from 2014 to 2019 = 12.95%
Initial Purchase Price: $300,000
if
Change in Median Income = 12.95%
Then:
Maximum Sales Price = $338,861.99
Total Appreciation from AMI = $38,861.99
Total equity = Appreciation + Debt Reduction + Down payment