just guessing here – several possibilities for cash sale
– seller knows the unpermitted additions would have to be removed / brought up to code
– seller knows an appraisal won’t support the sales price without the additions – an appraiser won’t give much value (if any) to the additions because they aren’t permitted
– seller knows the house without the additions isn’t worth what he wants to sell for
probably can’t obtain financing of any type until the unpermitted additions are resolved – a loan underwriter will pickup on this issue and refuse to let the loan close