Found a Deal with Foundation Problems

[Alvaro Rodriguez]

I found this house in this nice neighborhood in Houston Texas. The house has an asking price of $220k, and all the houses around it same size and same characteristics have been sold between $280k-$340k. After inspection found foundation and plumbing problems. We got an estimate and it came out to $20k in repairs. The seller is willing to fix them or reduce the price on the house for me to fix it. This is the first time I see a house at that price in that neighborhood. My question is: should I let the seller fix it and pay $220k or should I ask for $200k and fix it myself? Will the house appreciate less if it has had foundation and plumbing repairs? Have you had any experience with foundation and plumbing challenges?