An unfortunate problem, but better that it occurred prior to move in. Agree with Raimondi's comments above.

It isn't like it was damaged and left to rot. If properly abated, it will be fine.

What caused the leak? More details needed than just leaking pipe.

Is there a chance of shoddy work and other pipes leaking down the road?

I would definitely not purchase until everything has been remediated and you are allowed to inspect properly.

On an existing house purchase, big damage like this would 99% of the time go through insurance, so a buyer would definitely know that it had a water damage claim. When buying our previous house the title company told us it had a water claim and we asked for further clarification. It turned out to be a leaking ice maker in the kitchen island that required some repairs. We had our inspector take a closer look before proceeding with the purchase.

Assuming a full repair I'd see no reason not to go ahead. Sounds like the builder is on top of it.

Interesting comment on knowing about prior repairs. That's information I've never seen available on a house, nor has the question ever come up. Who collects such information and where do you find it? We've looked at quite a few houses that have obviously survived fires but there has never been mention of prior claims by anyone involved in the process. I'm certain many of the houses we've looked at must have had floods from time to time. Not that I care so much about history, it's current condition that counts, but I'm curious if this is a thing I've been missing all this time.

This was for a house purchase in Los Angeles in 2010. It has been a while, but I think it was in the data gathered by the title company. My realtor was also very thorough and looked up every bit of data for the property/house from the local zoning/building office.

Whether you can simply "walk away" is for your lawyer to advise you.

Once it's remediated, a satisfactory inspection would seem reasonable.

Supply lines under pressure tend to go quickly. We once had that after the plumber replaced the steel with copper in an old home. He tightened the main to the supply a bit too tight and it snapped a couple of days later, flooding the basement. Once repaired, all was fine till I demolished the house 20 years later.

Makes me wonder what else the builder short cut. Any more tephlon tape or pipes that could cause problems later.? Right now they are willing to fix it as the market is plummeting. But 2 years ago , it was buy as is. It just makes me wonder on the quality of work behind walls

I have to say that in this market, I would walk if you were allowed to. And I am not at all saying that it is a rational decision.

A couple of points - how long is this remediation going to take? What is the foundation?

Who turns on water without fixtures or was it a test? In my area (and this is so logical as to be normal I would think), the inspectors drive the pressure way up while things are capped and there is a leak detector. How was this not done and corrected? And then how can you feel good about the other areas of incompetence?

Lets say the test was never done. Ok - there aren't fixtures in that kitchen, so why would the water be turned on?

As I think about the level of potential incompetence, there is absolutely no way I would close on a house with an inadequate explanation such as "leaking pipe". Now, some vandal came and broke in and turned the water on - that I could take.

How long was the water leaking? Looks like water flooded the kitchen. The cabinets soak up water and wood swells. Do cabinets need to be replaced?

I am not a normally "I would walk" kind-of person. I accept that buying a house means some things will not be perfect, especially with new construction. There are thousands of things that can go wrong in a new build, and sometimes crap happens.

However, I agree with David Cary here. For me, that kind of catastrophic event would likely mean I'd walk away.

There are so many caveats to that too though, that only you can answer. Will you lose any money you put down? Do you have other acceptable housing options? Are prices rising or falling in your area? In my area of the east coast prices are still rising. So a signed contract from a year ago, let's say, will be cheaper than signing a new one today. But if prices are falling in your area and you can get out of this contract without penalty, that could be your silver lining.

Too many variables for me to give you a solid answer. But I'd be inclined to walk.

in this market, I would walk if you were allowed to. And I am not at all saying that it is a rational decision.

If similar houses are selling for lower prices, definitely rational if permitted.

" he builder has hired water damage experts to remediate the water damage. They are replacing damage flooring, drywall, cabinets. "

@Izzy Mn, see the OP.

Just from looking at your photos, this water damage shows in the ceiling and on the floor. Smack dab in the middle are the kitchen cabinets. I would want the cabinets replaced. My concern is the culprit is a pipe? One pipe did damage to ceilings and floors? Not a builder, but where else did the water go? Insulation? What about the electrical? It doesn't take long for mold to start growing. Read this and then walk away.

https://www.inspectionsupport.com/resources/what-to-know-about-water-damage-before-purchasing-a-home/..