Unfortunately this is happening to everyone because there is a flood of foreclosures and brand new homes built by developers that aren't selling. In my area, home prices are down 30% from 2007 and a lot of homeowners are upside down. The only thing you can do is to hire another appraiser, have them do an extensive inside/outside appraiser and HOPE they come up with a different number. I find giving the appraiser a list of all the improvements (especially ones they can't see) that are permanent to the value of the house, always gives me a better appraisal than neighbors who have only had a drive by appraisal. Carpet doesn't add much value but your new roof does. Also, if you have upgraded (not builder basic) appliances, fixtures, counter tops, windows, insulation, HVAC system, automatic sprinklers, water heater, whole house filtration/softening system, wall treatments (like wood wainscoting, crown molding, over sized base), flooring (stone, wood), patio/cover, anything affixed and permanent that upgrades your home, that adds value. Even with all of the improvements we have made to our home, the economy, foreclosures and over building of new homes in our area meant we still took the 30% hit just like everyone else, we just started from a higher value than they did.