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First time home buyer looking for advice on a situation

To start, my dad is my realtor. He has our best interests at heart and just wants what will make us happy so Im looking for some outside perspective on a situation.

My wife and I are trying to buy our first home. I have a little knowledge I've sapped off my dad from helping him flip houses but we're pretty fresh to it nonetheless. We looked at a good few houses and were surprised to find a home in a neighborhood that couldn't be much more perfect that seemed to check all our boxes. It is a flipped house but my dad and I have done that ourselves several times so it's not a huge red flag for us. So we put an offer in and struck a deal that we'd do no inspection to get us the house at about 10k under asking price. We were pretty happy with price it's actually a little below our max budget, especially after the reduction.

However, now that we've seen it a few more times, weve noticed things and the seller is refusing to do them. Most notably are two things: that they put an addition on, but the crawlspace which is underneath has plenty of gaps and is uninsulated. We live in upstate ny so it gets very cold in the winter, and the addition is our kitchen so there's water and drainage pipes in the crawl space, so I worry the pipes will freeze if that area remains uninsulated (not to mention cold floors). Next is that it has gas heated water radiators for heat, which is great, but there is only 1 radiator for the whole downstairs. It is all open floor plan downstairs but it's on a wall at the front of the house and leaves the kitchen without any radiators.

We conditioned the contract on them getting a certificate of occupancy from the town, since it is so much new construction in the flip they need one anyways. Will the town require any of that for code? If we go to the town ourselves, I worry the seller will get pissed and pull the deal.

Am I crazy for still wanting the house? We love all the other parts of it, but I don't wanna get in too deep and end up spending all our money and regretting it later.

What would you tell a client if they were in our spot?

Hopefully this makes sense.. Feel free to ask questions if it doesn't and we really appreciate any advice in advance!

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source https://www.reddit.com/r/RealEstate/comments/vhdrrk/first_time_home_buyer_looking_for_advice_on_a/

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