Should my realtor be telling me...

[Able Thomas]

...that a potential house that I'm thinking of buying is a money pit? Recently put an offer on a 1930's brick Tudor in California. The home inspector found:

Three major pipe leaks in the galvanized pipes in the basement, and water is seeping into the basement from an unknown source

Flooding in the basement

When it rains, water seeps into the basement from the north, west, and east sides of the house. The basement is completely muddy and has been that way for years (there is a white sparkly substance on top of the wet mud)

There is an unpermitted addition 

There are stair-step cracks greater than 1/4 inch located in various lower parts of the brick exterior

There is knob and tube wiring, and when they added the addition, they just tapped into the old knob and tube. 80% of the outlets are not grounded

There are no outlets in the main bathroom

Walls are plastered in certain locations of the house. Does this indicate asbestos?

The house is settling in the rear and front porch area, but I was told this is normal for a house of its age. True, but it still needs to be repaired

The kitchen sink water flows slowly. The inspector wasn't sure why 

Had to Google what is considered a money pit, and this house seems to fit

The realtor has told me we will be asking for credits, buydowns, and we will get high estimates to give to the seller, and not worry because he knows a guy who can fix everything. 

Thank you to everyone for their valuable guidance