Too many people, in remodeling their homes, make it look like it was remodeled. A good remodel is not obvious; it fits into the floorplan. In the example of changing a 1.5 bath to a 2 bath, a bedroom lost its closet; thus technically it is no longer considered a bedroom. Now you went from a 3/1.5 to a 2/2. This lowers the resale value, as fewer people would want to buy a 2 bedroom home.
Personally, I would not buy any home that was built without permits or has permitted remodels with weird layouts (like having to go through the bedroom to get to the kitchen). My favorite tacky remodel is converting a patio or garage into a room. What are people thinking? If it looks like a remodel, people shouldnt’ do it. Doesn’t anyone consider sensible architecture and floor plans?
Some people have not taste. Why would I want to buy their tacky remodel, or their unpermitted house? And why should we? With inventory high and growing, there will be plenty to choose from. So no need to settle.