Options available for VERY low appraisal?

[Tina Verstrate]

What recourse do I have if an appraisal comes back substantially lower than the contracted amount? This is for a FHA loan, so my understanding is that the appraisal sticks with the property for 6 months. The difference is significant enough that if we were to consider lowering our price to the appraised value, we'd lose any profit we would have made, plus lost approximately $11K of renovation costs. We're talking a $200K home, not something huge by area standards... My realtor has had no luck disputing appraisals of this nature in the past, based on the depth of information the appraiser typically uses to determine a value. One of the main comps used was 6-1/2 months old and over .75 miles away. This is a hot community of hundreds of homes, where homes are selling like crazy and nothing stays on the market long, so I don't know why the appraiser chose to go almost to the edge of the community for comps. Can anyone advise me of options that I may have or alternatives at my disposal? I'd love the family to bring cash to the table, but I doubt that will happen.