Iron ochre or clay?

I am looking at a house I am interested in purchasing. Upon walking through, I discovered a strange orangish material in the sump pump. See attached picture. I've never seen anything like this. Internet searches lead me to believe that this may be iron ochre. Sellers say that it is clay. Seller is a professional plumber. House is located in upstate NY. Buy with this condition or run away? Thanks for any input.

 

dont want to cast a vote because Never heard of it we dont even have basements. Sounds like theres guys making money off cleaning it up looked it up on you tube. Sure looks like it is the iron ocre to me . they say its a bacteria then how hard or expensive a test is that? However if its positive where do you go from there? Cross that bridge later. If that iron ocre occurs at all in area Id want tested.