He has the choice of cutting his rice or walking away. Sounds like he is ready to just say "no" to lower offers. Maybe. You just never know.
That is what a home insector should do. There are both good and bad inspectors. Some will miss things, others will do a superb job.
Te answer lies with your deisre to own that particular house. Real estate is vauled at what people are willing to pay. If the base price of a house is $200,000 three people can look at it and walk away with three idfferent ideas. One will try to buy it lower because he things it is good practice. Another may be willing to pay the asking price but expects the house to be in good condition. The third may think the house is severely underprice, knows it the location he always dreamed of, and is willing to pay for $20,000 in repairs just to have it. The deciding factor is your willingness to pay the asked price, and the lender's willingness to finance it for you. They usually want an apraisal to be sure they won't have a loss if you run off to a South Sea island.
You have to decide what your pain tolerance is on something like that. Is renovation something you enjoy doing, or a chore to be avoided. If you have serios concerns after seeing the report, just move on to another house.