We have tenant in a sf in the best neighborhood of the  city on a dead end street.Sec 8 failed huge deck because of peeling paint. 

I talked to a couple inspectors to educate myself and they both told me that if there were any areas on the exterior that they couldn't access and they visually observed peeling paint they would have to flag it.

We used masks when breathing when we disturbed surfaces, as I am allergic.  

@Justin Robert A lot of the boards are starting to dry rot and peel off.

In the words of the immortal Biggy Smalls, "even your moms will set that *ss up properly gassed up, hoodied and masked up, for the fast buck, she'll be laying in the bushes to light that *ss up"

I recently went with a trafficmaster peel and stick in a kitchen/half bath in a duplex at 79th/stateline. 

The various areas of the cedar siding that are weathered and/or peeling need to be scraped and painted.

@Mike Morey - I have had very good luck and prices through Allstate, I use Dave Bochtler located on Center St in Auburn, Only catch is their inspector does find stuff like roofs and paint peeling and they put timelines on fixing them.

Paint is peeling and other problems are there that you would expect for a house that has been left vacant for a long period of time.This is the first time I have talked to a seller directly and I am not much of a negotiator.

So the paint was peeling badly.