Portland revaluation could affect home sales

PORTLAND – A citywide revaluation that spells higher taxes on residential properties could slow the rise in Portland’s home prices, according to real estate experts.

Portland’s first revaluation since 1991-92 showed the total value of property in Maine’s largest city jumping from $3.66 billion to $6.78 billion.

Residential values increased by 104 percent overall compared to 54 percent for commercial property. That means homeowners will shoulder a bigger share of the tax burden when the new figures take effect next year.

Revaluations that show big increases in property values sometimes prompt homeowners to sell, said Valerie Lamont, the director of the Center for Real Estate Education at the University of Southern Maine.

People unaware of how valuable their property has become may decide to cash in on their gains, she said.

“Oftentimes, that’s enough to get people, if they’re thinking [about selling] or on the cusp, to make a move,” said Alan B. Peoples, president of ERA Home Sellers.

Sonny Whitton, whose Peaks Island home with a slim water view has jumped in value from $87,000 to $269,000, said he would be loath to sell.

“But if things get too tough, people can change in a hurry,” Whitton said.