I have heard this every once in a while out there. And I guess the answer depends on what you are looking for a home inspection to accomplish. There are two common goals buyers have for a home inspection:
1. Find out all the issues with the home so you aren't hit with any huge, unexpected repairs.
2. Find repairs that are needed and ask the seller to repair them or receive a credit for the repair.
So I guess if you are looking solely for the 2nd option, you wouldn't necessarily want a home inspection. However, I'm not quite sure why someone would not want to protect themselves with goal #1 and know the deficiencies of the property?
Yes, sometimes you can walk into a foreclosure and see the walls damaged and the carpet stained and know that a lot of work needs to be done. But do you know if the heat and A/C operate? Is the main electrical panel wired properly? Does the plumbing operate properly? Is there proper ventilation in the attic? How does the roof look? Some damaged drywall and carpet might cost $5,000 or so. But if you need all of the aforementioned, you might be looking at well over $20,000.
Of course the choice is always yours, but hopefully now you have thought of all your options.
Your local Pillar To Post home inspectors, Joseph Lang and Jimmy Zazueta, hope we can earn your business.
Hopefully this gives you a little more information about a professional home inspection and its value. Be safe out there.

Posted by Joseph Lang of Pillar To Post Professional Home Inspection

(c) 2009 Joseph Lang dba Pillar To Post
Great post. You might be thinking you are getting a deal but if there are 50K in repairs then it might not actually be a deal, and maybe the bank needs to be made aware of that.