Lender is telling me I need to fix up the house before it can be appraised?

I am convinced my lender is an idiot, and my realtor agrees. She's telling me that before the house can go into closing it needs to be appraised. But before it can be appraised and before it is even in my name, I need to fix it up. Put new carpet in, a washer and dryer, a range(which was in the contract to stay but the people took it) and paint the walls. Why would I fix up a house that isn't even mine? And why would it need to be fixed up before it is appraised? None of this makes any sense! We had the "appraisal" once already, but they didn't even appraise it, the guy just wrote down what our first offer was on the house before the bank countered. It is a short sale if that means anything! I just feel like no one is doing their job except my realtor and I need some advice!