"My father-in-law is a very smart man. He did a lot of the work on his house himself, and that is good, except that it will never pass inspection for sale and MIL is constantly talking about selling that house. While they were gone over the weekend, the 32 year old hot water heater had a major catastrophe and flooded the rear wing of the house. FIL is replacing the water heater, but trying to salvage the 32 year old carpet and padding."
That part of this that hurts my brain is that they own a house that's large enough to have 2000 square feet of carpeting on the bottom floor of one wing but it's got 32 year old carpets. I'm guessing that your MIL wants to sell it so she doesn't have to continue staffing it.