As for LP/SP%, most of my sales, and buys have been close to LP unless the agent has grossly over priced the listing, or there is a major defect that is found.

I make sure they see the inspection report ... then if they don't want to come down on price I remind the agent that the items in the inspection report are now known defects to both the agent and seller, and as such they must be disclosed to any buyer, whether it is me with my counter offer or any other future buyer.

@Ericka Grant It's a long shot, but the siding may be T111 which was defective and recalled years ago.

The winning bidder takes title to the property subject to all defects, liens, encumbrances, and matters of which he/she has or could obtain knowledge.

They use a medium dark primer that best highlights drywall defects.

What one considers and inconveniently places HVAC unit is not a defect and therefor not something that must be disclosed.

Turns out they thought we rented them an apartment with a defective stove, and considered moving till we showed them how to clean the stove, and the problem was actually their fault.

Home inspection turns up major defects? 

Will the new owner be able to turn around and sell the property like this or is this considered a "defect"?

it means that there is some defect in the title that prevents the transfer.consult with an attorney