Appraisal value came in lower than previosuly

[JayCinta Henry]

About a year ago appraisal value was 192k. Due to a death situation the sale was put on hold.  The process has restarted, from point 0.  This time appraisal came back at 172k., sale price is 160k. Previous owner was in the middle of re-doing the kitchen, bedroom carpets are new, flooring is ok and a fresh coat of paint will spruce it up. I am wondering if this lower appraised value is bad for me as a buyer and in what ways. On the other hand I am inclined to think it doesn't matter. as the loan is covered and the market will determine the value of the property once it's updated. 

[Kerry Noble Jr]

What is your strategy with the house?