Backing out of house deal!

Well the house we picked out was beautiful and full of personality and character. Unfortunately I can best describe the house as a fancy red sports car for a family........looks nice but costs way to much and is not to practical. The first inspector that went in passed it with flying colors but the inspector for the housing company Tore it to pieces. Apparently there was major electrical and structural issues as well as when the inspector kicked the foundation it crumbled. It would have cost us 20-40 grand to bring it up to standards! So trusting the very thorough inspectors judgement we are choosing to let the shinny red convertible go to some one with a mid-life crises or more money.