Newsflash: House Dry Rot Steering FTHB Away

I’m in the process of selling my first home (in CA) that was converted to a rental and was trying to sell it before I hit the 5 year mark (which prob won’t happen now). Because we were rushing to put it onto market, we didn’t get a chance to fix the dry rot in the back. We got an inspection done which estimated the fix to be roughly 10k. That has been provided with seller disclosures. The inside of the house is renovated, as we fixed everything up when we lived there. It’s drawn a lot of attention, but seems when buyers, especially first time home buyers read about the dry rot, they deter away. This last week, we offered a credit to buyers who were in love with the inside and the neighborhood. Still waiting to hear back. My partner thinks it might be worth while, now that we won’t meet the 5 year mark to sell, for us to pull it off market, fix the dry rot, then relist in august, as opposed to just lowering the price til someone decides to buy. Our realtor provided their opinion and said they wouldn’t recommend fixing it because there are other things inside that people complained about as well (such as flooring and door jams) the other thing is the market might be a gamble with interest rates. What would you do?