Comps and Appraisal confusion

[Account Closed]

In my areas I rarely have problems understanding the comps unless the properties are non conforming. I'm working with a property that is exactly like its neighbors. A little subdivision of low quality construction, 1960s rectangles. They are all 1200 square feet with the same yards and attached garages. No additions. But the comps are truly all over the place for the same house. Two houses sold in December, one for $320K and the other for $230K. They are 3 houses apart on the same side of the street. The $230K was in good condition, with some updating and new paint and flooring. The $320K house is tricked-out with all new finishes and cute landscaping. The financing on them was the same (buyers with 3% down and max loan amounts).

Now there are a few rehabs of the same house listed at $320K, without any of the same finishes as the tricked-out house.

How did the appraiser on the tricked-out house get a $75/square foot increase?