The seller has just made it simpler for you to decide what to do.

Get the inspection. If it turns up minor things you can deal with, go
ahead with the deal. If it turns up something you don't want to pay
for, tell the seller the deal is off because it doesn't meet your
inspection contingency.

Ordinarily, at that point, the seller negotiates a price allowance for
the repairs. But if this seller says he won't negotiate, you don't have
to worry about that, just tell him the house failed inspection and you
aren't buying it.

(This assumes that your offer includes a contingency for inspection --
if the house doesn't pass and you can't reach an agreement with the
seller, the deal is off, you get back your earnest money, the house goes
back on the market.)

--
is Joshua Putnam
http://www.phred.org/~josh/
Updated Bicycle Touring Books List:
http://www.phred.org/~josh/bike/tourbooks.html