Let’s start with the question on everyone’s mind when they receive a property appraisal report: What is my home worth?
The value conclusion is usually the first thing people search for when flipping through the report—and understandably so. Whether you're refinancing, preparing to sell, settling an estate, or navigating a divorce, the appraised value plays a critical role in financial decisions.
But that final number doesn’t appear out of thin air. It’s the result of a detailed process that considers everything from your home’s size and condition to the movement of the local market. And in Southern Maine—especially in York and Cumberland counties, where values can vary widely between coastal communities, rural lots, and suburban neighborhoods—understanding how an appraiser arrived at that number can help you move forward with clarity.
Where the Value Comes From
At the core of most residential property appraisal reports is the Sales Comparison Approach. This method determines value by comparing your home to recently sold properties that are similar in size, location, condition, and features. These “comps” are then adjusted upward or downward based on how they differ from your property.
For example, a two-bedroom bungalow in South Portland might be compared to similar homes in the same neighborhood, but if your property has a finished attic or a larger yard, the appraiser will adjust the comparable values accordingly. In other parts of York County—such as Kennebunk or Sanford—seasonal demand, location near water, or the presence of acreage may be more relevant drivers of value.
You’ll find the appraiser’s final opinion of value near the bottom of the Sales Comparison Approach page, usually listed as the “Opinion of Market Value” or “Indicated Value by Sales Comparison Approach.” If other valuation methods were used—such as the Cost Approach or Income Approach—those values will appear in separate sections, but for most single-family residential properties, the sales comparison section carries the most weight.
The final number represents a professional opinion of what your property would likely sell for under normal market conditions. It’s based on market data, not listing prices or personal expectations, and it reflects both local market dynamics and the property’s individual features.
Understanding the Subject Property
The report begins with a description of the subject property, which includes your home’s address, legal parcel information, tax ID, and zoning designation. It also details whether the property is connected to public utilities, sits on a private road, or falls within a flood zone. These facts provide a baseline understanding of the property’s physical and regulatory context.
In Maine, these foundational details can matter more than homeowners expect. For instance, properties in rural parts of York County might have gravel access roads or shared driveways, while homes closer to Portland could carry restrictions due to historic designations or tight zoning overlays. This part of the report helps explain how a home’s setting may influence value—even before features or finishes are considered.
What the Market Says About Your Neighborhood
The neighborhood analysis section places your property in its broader market environment. This includes a discussion of housing supply and demand, pricing trends, and the economic health of the surrounding area. The appraiser considers whether values in your area are increasing, stable, or declining, and also evaluates the rate at which homes are selling.
In Cumberland County, the dynamics may differ greatly from one town to the next. A home in Falmouth may benefit from school district desirability and proximity to Portland, while a home in Windham or Gray may be impacted more by lot size or commuter appeal. York County communities like Wells and Ogunquit might be subject to seasonal fluctuations, where buyer demand surges in warmer months but slows during the off-season.
This section helps contextualize your home’s value by describing how it fits into the local real estate landscape—not just physically, but economically.
Describing the Land and the Structure
The next section of the report offers a detailed review of the land and the building itself. The land description, or site analysis, looks at lot size, shape, slope, views, and other physical traits that may affect usability or desirability. Whether your home sits on a hillside with coastal views in Cape Elizabeth or on a wooded lot in Hollis, these characteristics influence how buyers—and therefore appraisers—see the property’s worth.
The description of the structure includes architectural style, square footage, room layout, construction materials, heating and cooling systems, and other key features. The appraiser also considers the condition and quality of the home, separating wear and maintenance issues from the inherent craftsmanship or upgrades present. Renovations, such as a new kitchen, updated bathrooms, or recent roofing, are factored into this section and can have a measurable impact on value.
This portion of the report tells the story of what has been built on the land and how it has been maintained, making it one of the most detailed and personalized parts of the appraisal.
Exhibits, Photos, and Supporting Documents
Property appraisal reports also include a series of exhibits designed to support the findings. These typically include a location map, a sketch of the home’s layout, and photographs of the property. The layout sketch shows how the square footage was calculated, often highlighting areas like finished basements or converted attic space.
Photos provide a visual reference for both the subject property and the comparable sales used in the valuation. In a region like Southern Maine, where two homes a mile apart can look and feel vastly different, these photos help clarify the adjustments made in the sales comparison grid.
These exhibits serve to document, verify, and visually support the appraiser’s conclusions. They add transparency and make it easier for readers—including lenders, attorneys, or homeowners—to understand the reasoning behind the final value.
What Homeowners Often Ask
How is the appraised value determined?
The appraised value is based on recent closed sales of similar properties, adjusted for factors like condition, square footage, lot size, and location. In Southern Maine, this can mean comparing a colonial in Westbrook to others nearby, or adjusting for waterfront access in places like Raymond or Kennebunkport. The goal is to reflect what a typical buyer would reasonably pay in the current market—not the highest possible price or a figure based on emotion or estimates. The appraiser isn’t trying to go high or low, but rather to land on a number supported by market data and professional standards.
Why didn’t the appraiser use a sale I had in mind?
It’s common to wonder why a recent sale in your area—maybe even next door—wasn’t included. But not all sales meet the criteria for comparability. For example, if a home in Biddeford was sold between family members, underwent major renovations after sale, or had unusual financing, it might not reflect market value. Similarly, in Portland’s East End or Old Orchard Beach’s seasonal neighborhoods, properties with unique layouts or investment use might not serve as reliable benchmarks. The appraiser selects comps that are both relevant and supportable based on the property's key characteristics.
Can I ask questions if something seems off?
Definitely. If something about the report seems inaccurate—such as a missing update, incorrect square footage, or a misidentified feature—it’s okay to ask for clarification. For instance, if your Windham home recently had a finished basement added or your Falmouth property has a heat pump system that wasn’t noted, bringing that to attention is worthwhile. In lending cases, there's a formal process to request a reconsideration of value through the lender. While the appraiser must remain objective, they can update the report if verifiable facts were missed or documented incorrectly.
Will this be the price I sell my home for?
Not necessarily—but it’s a strong, professionally supported starting point. An appraisal reflects fair market value at a given moment, based on the assumption of a typical buyer and a normal transaction. However, sale prices can vary depending on the season (which matters in towns like Wells or York Beach), how the property is marketed, and how much competition there is among buyers. For example, a well-staged home in South Portland may receive multiple offers and exceed its appraised value, while a rural home in Limerick might take longer to sell and negotiate closer to—or below—appraised value. The appraisal is not a guarantee, but it’s a grounded, data-driven estimate to guide your decisions.
Reading Beyond the Value
While the final value is what most people turn to first, the real value of a property appraisal report lies in the full picture it provides. It tells a story—not just of the home’s features, but of its place in the market, its appeal to buyers, and how it compares to what has recently sold nearby. For homeowners in York and Cumberland counties, where the real estate landscape is diverse and dynamic, that deeper understanding can be just as important as the number at the bottom of the page.
At LM Appraisals, we provide residential valuation services with clarity, transparency, and a strong understanding of Southern Maine’s unique markets. If you have questions about your appraisal report or want guidance in interpreting the details, we’re here to help you make sense of the numbers—and what they mean for your next steps.
If you’re reviewing a recent appraisal and want help understanding the details—or need an independent valuation for your property in York or Cumberland County—don’t hesitate to contact LM Appraisals. We’re here to help you move forward with confidence.