You should have a structural engineer look at this home before you do anything else. If this major whole in the wall has existed for years, the mantle of earth under this house could be gone. This is happening far too frequently. If a seawall is not maintained, 17k, will be "a drop in the bucket" Buyer Beware!

Was the leaking seawall evident during your showing on the property? If so this may be a cosmetic issue and not covered by right of home inspection. The best way is to negotiate a settlement, up to the limit of the contract, if contract had a %OR $$ limit, (Max 1.5% of price). iF THIS IS NOT SATISFACTORY, YOU SHOULD BE ABLE TO WALK, IF THE CONTRACT WAS PREPARED BY A PROFESSIONAL REALTOR.

If the contract says the seller won;t repair anything over $5K, then your only recourse is to:

1- cancel the current contract, and then if possible re-negotiate a new contract which included seawall repair; or
2- follow through with the current contract and have the seller cover the $5K in repairs.

The time to do contract negotiating is prior to inspections--many buyers are under the mis-conception that post-insepction is another opportunity to negotiate, but the simple fact is that any offer should be made with the potential repair costs in mind.

In the current market, however, if you did choose to walk away from the current contract, how likely would the seller be to receive another offer within a reasonable time frame? Is your offer already under market price? From what you have stated, it does not sound as if the seller is very motivated, but the contract price may have something to do with that.

I second and third the responses of the other Realtors who have stated that these are questions you should be asking your Realtor, and if you chose not to have representation, my question is why? Purchasing any property is a huge investment--purchasing a waterfront property with all of the additional factors involved, well, that's more than just huge...believe me, I did it five years ago, and the little things never cease!

Appreciate all the responses,
The contract says if the cost of repair above 5 k and the owner won't fix it I could walk away.
The problem is , they argue that the seawall won't collapse today or tomorrow so it's not
their problem. Any thought?

They are all good points and what you can do depends on how the contract was written. Have your agent negotiate something equitable for both you and the seller, so every body is walking away feeling great. Other wise if you are not ready to spend that kind of money on the sea wall, walk away from that property and find another. If the sea wall is to the point to be unsafe for people, I would make a stronger point to have the seller repair it. Good luck Chak.

The best insight can probably be provided by your real estate professional because the have access to the facts surrounding this situation. However, your purchase contract should clearly outline your options.

You can always request the owner to make the full repair and adjust from there. As it stands, once they become aware of this defect, they will need to disclose it to future possible buyers. With a buyer standing in front of them, they should be willing to listen.

Good luck

Chak, it all depends on the contract you signed. In a lot of cases the seller pays for repairs up to 1.5% of the sales price, in other cases he pays nothing but you can back out of the contract if the cost are too high for you. Like I said there are all kinds of scenarios. Check your contract. One way or another I would always try to negotiate with he seller.
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How repairs are covered should be addressed in your contract...is this an AS IS with right to inspect and acceptance at the discretion of the buyer or is it subject to a limit? Is it possible that the seawall can be repaired or must it be replaced? Did you buy the home with a Realtor, look to that agent for guidance. There are several ways this can be worked out, your agent can suggest the alternatives and go for a win/win for both parties.