First, the clothes have a tendency to feel slightly "moist" when they come out (most reviewers said a quick shake and the moistness goes away).

Example: most women only buy repeat clothing items online.

They were ok for fixing a garage door and a clothes dryer, but anything mission critical - forget it.

If you know about the water issue, and you plan to provide a disclosure to the buyer, you are most likely required to disclose this fact (most state disclosure docs ask specific if you know of any water or dampness issues below grade).If you disclose the issue, buyers are going to ask what you've done to remediate it, and if the answer is "nothing," that might scare off some buyers.The bigger issue that buyers will worry about isn't the water itself, but the mold that will likely start to grow if the condition persists.Personally, I'd try regrading to fix the problem, so you could at least be able to disclose that you tried to fix it.

If the closet is on an exterior wall then it has two strikes against it and will very likely grow the light grey/light green stuff you're seeing on doors, clothes, and especially leather shoes or boots.I wouldn't discount that there "might" be a leak somewhere.

We took photos and changed the locks, then started the renovation.Power off, rotting food and no furniture/clothes/personal possessions is good enough in NJ to change the locks.

Could use a deep cleaning and some minor repairs (new front door, fix soffit, paint, carpeting & damp in one corner of basement).So, how should I counter?

We used Thompson's WaterSeal Waterproofing Stain semi-transparent after we pressure washed it as it says "applies to freshly cleaned damp or dry wood."

Were you wearing clothes when you went in to discuss this with Wells Fargo?

Then schedule a meeting and check it out and take a gazillion pics of everything, the floors the windows the ceiling, , do not forget to check out with a flashlight the ceiling directly beneath the tub and showers, go to the basement if there is one and sniff for mold or damp smells,  check out everything and then you estimate the repairs costs.