||04-26-2014 06:56 PM
Not my expertise but some observations. If you live in snow country, you have a freeze-thaw issue. Your window sill is cracked on the outside. It needs replacing as part of the inevitable brick repair job you are facing. Plan on both to get the wall tight against weather.
That wall needs repointing in numerous places to dig out failed mortar and re-install. Once you start, it might grow into more than just where the mortar is already missing. Not a big expense but a very necessary one. You want to keep the old brick for the "look."
Inspect the basement below the wall for sagging or cracks if you can. The actual reason for the problem might have been sagging there which transmitted upwards to the wall by the window which THEN allowed water to seep downward. A sagging wall with crack in the basement is expensive. See if you are allowed to explore behind the basement finished wall.
"Punky" is common term for a bit soft or maybe even smelly. Wood guys makeup words like that because they are not very smart.
If the price is low enough and the basement does not reveal any serious wall damage you might still buy the house. I will defer to other guys who have experience in cold country ... or who are smarter than some punky carpenter. ... or who know more about brick damage.