Hi,
Do you mean it is better to say 'the flood made the building sink into the ground rather than 'the flood made the building sink'? Yes.
"The flood made the building subside' and 'The flood made the building sink into the ground' are interchangeable? #1 sounds better than #2, but I think I'd probably say 'The flood undermined the building'.
I hope you understand that if the water just rises around the house. it doesn't mean that the house sinks into the ground. When the water goes down, the house will still be in the same position (unless the water softens the ground and damages the foundations of the house. Even then, the house might just collapse.)
Best wishes, Clive