You can challenge the appraisal, have your agent pull some comps that support the higher price, however, the buyer usually will use the low appraisal to their advantage and in this market the seller is pretty much stuck with the lower price (or not selling). I believe that you can appeal the appraisal or ask for a second opinion but you probably won't have much luck with this. You can also put the home back on the market and roll the dice that you will get a better appraisal next time. Appraisal's are very subjective. You can have two appraisers come in with two totally different prices. Cleanliness and overall home condition really do make a difference. If the appraiser walks in and the house smells like smoke and has pet hair flying around in the air it is almost a given that this home will appraise lower than it could if it looked and smelled it's best. The same thing goes for selling the house. In a normal market foreclosures and short sales aren't usually included in the appraisal but at the moment they are much more significant because they are around 25% of all sales so they are often included now. What is the address of the home?