Siding repair and home inspection

[Kay Doria]

Purchasing first investment and we had offered full price with an escalation clause but asked for 3% CCA. Seller said 2% CCA with no other offers on the table. We took it. After home inspection the siding which we thought was just cosmetic was explained to be compromised allowing water and wind to easily cause further deterioration. 

Should we ask for a repair credit? I feel the seller was aggressive simply because of the escalation clause. Don’t want to lose the investment but also want the siding to be repaired. Thanks in advance for your thoughts.