The market condition matters because it changes how much runway you have to prepare a house properly rather than rush it to market. Tight supply favours a well-presented, correctly priced listing, but it does not erase the cost of a repair or an improvement that still needs to be permitted before it can be counted.
The permit issue matters because it is invisible until someone looks for it. Public records and online valuation tools see square footage and a sale date, not whether a renovation was inspected and approved, which means a homeowner who did everything correctly on paper can still get shortchanged by a number that cannot see the paperwork.
Keeping both in view, timing and documentation, is what actually protects your equity when you decide to sell. Get your hand-reviewed valuation from Joel Dyck.