Why flipped homes sell for 300k-500k more?

Just a general question, everyone knows that flipper put in 100k-200k in the house, but a house bought for 1 million easily goes for 1.5-1.6 million after flipping. I have even seen 1.8+ where flipper added one extra bathroom.

How does the appraised value / comp make sense in this case?

Is it just because that buyer will never have 200k to do the renovations on their own but they can put 20% down for extra value still?