No, that’s not what normal people think. People, especially first time buyers who lack experience, buy on emotion. That’s why staging works. They don’t know what’s big deal and what’s small potatoes that are easily fixable. Lacking that knowledge no wonder shiny all-dolled-up houses sell at a premium.
The flippers provide a great service. They take the hassle of managing the rehab away and give you the final shiny product. Normal people also are busy and have lives outside of real estate (unlike many of us here… ) so it’s perfectly understandable they don’t want to tackle something big and hairy like a rehab project.