The inspection found four majors: main water line corroded, mold in attic and basement, active knob and tube wiring as well as a leak in a section of the sewer pipe.

Sometimes damage because they either don't know how or don't care about how to properly take care of a house.I had tenants in a C-class, though safe, neighborhood earlier this year who completely ruined the kitchen counter tops because they put hot pots/pans directly onto it and would also cut directly on it without using a cutting board. 

Each time they have countered and more often than not we were able to work out a price.It seems in estates best interest to allow this process to play out.

Are you being countered?

I will still go with oak-colored wood cabinets and I still like earth tone imitation granite counter tops and white appliances (never black and never stainless steel).

Generally only crap properties are left over to buy "over the counter" at face value. 

I.e. the vanity, with the mirror, with the light, and then outline explicitly: bottom of mirror 12" above counter.  

For regular plumbing the inspector was able to identify a crack in an exposed basement pipe.

To do otherwise would be counter to the use of the insurance funds intended by the policy issuer.

The only way I've found to counter this is to bid higher.