zxcvbob writes:
The inspector is probably a pimpley-faced kid who has never seen SE
cable run without a conduit, or someone who just took a weekend course
and has no practical experience.

I'm not sure if it would pass inspection now, but I think it *might*
if it had a proper service cap. Tell the inspector to get F'ed, and
tell the buyers it only has to meet code for when it was installed in
the 60's and if they want to redo they can do so at their own expense
after they buy the house. Whoever paid the inspector (probably the
buyer) got screwed; you might want to helpfully tell them that.

Best regards,
Bob

I think you are all missing the point here. The inspection and
associated inspection contingency clause give the buyer the right to
walk away from the offer if more than $X (typically $250 in our area)
in issues are found during inspection.

Basically, anything an inpsector finds (and they always find
something) can be used either as grounds for walking away from the
deal or trying to negotiate a price concession.

If the local market conditions in general and the price you set on
your house in particular are such that you want to sell more than
buyers want to buy then it doesn't matter whether the inspector is
right or not. You may lose the sale if you don't accomodate the
buyer. On the other hand, if conditions favor the seller, then hang
tough since either the buyer will accept the sale as-is or you can
move on to the next eager buyer.

The point is that it has nothing to do with right vs. wrong and
everything to do with negotiations and the relative buyer vs. seller
power.

As an FYI, sale of our condo just fell through because based on the
results of the inpsection, the buyer wanted the following:
1. Replace all the windows (condo has beautiful wood double hung
windows that are 70 yrs old and therefore a little loose)
2. Upgrade electrical service to 200A (for a condo!) from current 60A
3. Replace *all* outlets with GFI !?
4. Fix broken radiators (which actually work, but inspector didn't
feel heat on them on the Spring day he tested them)
5. Run a dedicated outlet for refrigerator

In the end it didn't matter who was right or wrong. We were unwilling
to meet the conditions since we thought we could do better, so buyer
walked.