[ckissick]

I can't quite picture the problem, so can't give a good answer. But I can say this:

The normal mode of failure for a basement retaining wall would be for the wall to bow (rhymes with low) out, with the maximum deflection about a third of the way up the wall. This is because the top of the wall is restrained from movement.

This mode of failure occurs in clayey soil and can take years to progress to an unstable condition. This can happen with no movement of the house at first, and with no seepage.

Anyway, never rely on a Real Estate agent's opinion. You should have a soils engineer look at it and get a reliable opinion. I'd help, but it's a bit of a drive for me.