main water line break a week before closing!

[Sally O.]

We are in Northern MN and about to close on a home that has been vacant.  The sellers turned off the water to the house and now there is frozen ice all around the street outside the house.  I went to open the door for a city inspector (doing a favor for the seller because the seller lives 2 hours away) and the inspector told me the water line froze and it is their responsibility to pay not the city's.   We were buying the house as is but now this has happened.  I feel like we are getting a deal on the house so I feel bad about telling them we want this fixed first.   We haven't signed anything yet.  I googled that it would cost 2-3 thousand to fix.