Sorry to hear about that, Ricechex. Sounds like you did the right thing by having the home inspected (people who waive this right are nuts).
Wondering why you didn’t use the inspection report to negotiate, though. Also, if they see the inspection report and/or were notified of the problems — which they would likely do if you were using it to negotiate with them on repairs/cash-in-lieu/price reduction (my preference because you don’t have to pay property taxes on it as you likely would with cash-in-lieu or seller’s repairs) — they would legally have to disclose this information to any other potential buyers. You can use this to your advantage.
Sorry this one didn’t work out, and hope you find another house soon.
