Found electrical issues after no contingency offer was accepted

[Robert Voeltz]

Hello everyone, this is my first post here on biggerpockets.com. Unfortunately for me this is a question I should have asked prior to making this offer to purchase. 

The property is being sold via power of attorney.  They didn't include any condition report since they never lived in the house.  It's an older property but it has a New roof, modern windows, updated electrical, etc... the updates combined with the character and charm of the old house made it attractive.  It looked good during the walk through and after running the numbers, I made an offer.  Highest and best, no contingencies. It was accepted! Hooray! For now. 

Fast forward to a week later while getting estimates for renovations we found old electrical wiring connected to a newer junction box. It's knob and tube. It will need further investigation to determine the extent of the repairs needed. Most likely make this good deal a very bad deal.

So my question is, has anyone here ever made an offer without any contingencies and then been able to negotiate after finding significant problems with a property? I'm prepared to walk away loosing my earnest money if needs be.  I'd rather turn the situation into both a learning opportunity and a win if possible.  Any advice is appreciated.

After reading so many real estate investing books I know better.  The heat of the moment, finally finding a property I want to buy at a good price. I let the emotions take over. Never again. Every offer will be contingent from now on. Lesson learned.