The court appointed appraiser gave it a higher value because he assumed the property was in a habitable condition. It did not have a water heater, a portion of the house was missing drywall, and there was much deferred maintenance therefore the property did not qualify for financing.
I have sold several fixer uppers, Investors frequently call me to ask if there is something available for them to invest in. This property had several cash offers, it was sold to an investor who assumed responsibility for the city presale inspection and took the property "as is".
Sellers of fixer upper homes are sometimes unaware of the interest that investors may have in their property and unaware of the potential that the property may have. I have spoken to sellers who have been short changed by selling to an investor without giving the property exposure and having the opportunity to choose from several cash offers.