How does lack of building permits impact value/ability to sell?

[Matt Huber]

Hello!

I live in a PUD that was developed mid 80's through early 90s. As such, a lot of rehab has/is taking place in the area, as the original owners move out. I was perusing some of the houses that I believe to be flips to get an idea of purchase price vs ARV. Then I decided to dig a bit deeper and look at building permits that may have been issued. I'm surprised to find that very few of these properties have any permits on record, even though I'm quite sure most have had work done which required one. (Walls removed, appliances installed, one even had a newer roof - no permit on file for that.)

Assuming that the data from the county permit office is correct, current, and complete, what are the implications of this? The market is superheated at the moment; does that mean that buyers simply don't care? Or does anybody even think to check? What if a buyer calls out a seller on something like this?