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Buying a short sale

Hi I have put an offer on a short sale that is listed at $79,000. I was just told that someone else will be making an offer today on the house. I am wondering how much higher I should go on my offer. The basement has flooded twice so that scares me. The rest of the house will need some updating. We dont want to lose this house but i dont want to pay much more either.

Concerns about buying a house that has been flooded

Hi everyone I am a first time home buyer and i was looking for some advice on my situation. We have put in an offer on a short sale that we are really in love with. We just found out that the house has been flooded twice before and the seller never disclosed that. We are really interested in the house but we don't know if it is a good idea now. We were also now told by our agent that another couple will be putting an offer tomorrow and we have to decide if it is worth it for us to put a higher offer now.