Just to clarify on CAR’s example and the necessity to peel back the layers:

The house was initially unsellable on the last sale and required all cash. There were many issues with it so it sold below market.

The tax records show $350K not the $330K reported in the MLS.

The flipper did a tremendous job fixing, upgrading and adding to it.

It looks like it fell out of escrow initially because of appraisal issues (thus apparaiser does not = crazy).

The eventual buyer had a loan of $387,500 which suggest they had an 80% LTV at an appraised price at $483,750 and came up with the buyer bringing an additional $41,250 of cash to get the deal done.

Thus it looks like the flipper added about $130K of appraisable value by making it financable and adding considerable improvements.

Not making a judgement here but rather clarifying the facts on this one.