Low Appraisals on the Rise

an appraiser works to determine home value
an appraiser works to determine home value

Low appraisals are on the rise and they're killing real estate deals right and left.

The problem stems from a combination of short sales and foreclosures. Both are contributing to difficulties accurately pricing homes, according to MSNBC.

Roughly 40 percent of all home sales last year were foreclosures and short sales, meaning the property sold for less than the remaining mortgage. The National Association of Realtors reports that nearly one in four Realtors report losing a sale due to lower-than-expected appraisals. The National Association of Home Builders reports low appraisals sinking overall valuation.

Here's how it could spell trouble for you...