San franicisco house, buy or not buy, HELP!!!

I really like a house close to golden gate park.  However, it is a 1941 house.  Owner added a sunroom at the back in 1960.  Inspection shown: positive termite at windows( the wood around the windows are bad) need $7000 to fix according to pest inspection report.  But the main thing is that you can feel the floor of the sunroom is tilted about 2-3inches down at the side entering to the back yard.  the house back to the hill.  So the sunroom sits on hill.  But down stair is a basement room, I did not see any thing wrong or tilted floor or any ceiling problem while at basement.  The wall of the house externally looks good too, I did  not see any problem, it is wood siding.  What is happening?  I really do not understand.  

Questions:  A:  Is the termite a big problem?  B: is the tiled floor at the sunroom a big problem?  Please all the experts, I know you folks here are very knowledgable.  Please help.  It is very expensive to buy a house in San Francisco.  I do not want to put all the hard earn money to water.... Thank you very much for your help.