Unpermitted Finished Basement

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Hi All.  I am still searching for my first investment property.  I found a property on Zillow that is listed as a 4b/2ba, and is priced as such.  However when I pull up the public record, it is recorded as a 3b/1ba with smaller square footage, and an unfinished basement (coincidental the exact difference in square footage from the listing).  This tells me that the "finished basement" with an extra bed and bath, is not permitted.

I doubt a lender will lend on it as a 4b/2ba with the extra square footage, which tells me that there is an opportunity here to negotiate down the price to be more in line with the recorded 3b/1ba houses in the area.  But how difficult and costly would it be to get the basement permitted so it reflects on the county records?  Would I have to completely gut the basement, and redo it with the necessary inspections? 

The basement is not supposed to be included in the square footage count.  The additional bathroom would have to be permitted, so I would check with the city building permits department to see if a permit was pulled.  You could ask the building permits department if a permit would need to be pulled for any of the work done in the basement, but I doubt it would be required.