Low Appraisal for home re-fi

[Michael Shuell]

My plan had been to pull some cash out from my house to both pay off student loans and get started in investing.  

I assumed that:

- all home prices have gone up roughly 30% since my purchase (per zillow and the newspaper)

- Since the MLS had our home listed as a half basement vs. full, correcting this would add some value as well.

- finishing 900 sq. ft. of the basement, including a 4th bedroom w/ egress window would add substantial value

Apparently these assumptions were false as the appraisal just came back at $235,000.  Purchase price at the end of 2013 was $213,000.  Obviously not what I was expecting.  Does anyone have any suggestions?

The house is 1700 sq. ft, 3 bed, 2 bath at grade.  900 sq. ft. of the basement is finished with the 4th bedroom.  Total finished sq. ft. is 2600.  Appraisal at purchase (2013) was $219,000,

Any insight would be appreciated.  Thanks!