If you don't get to inspect the property until you have an accepted offer, then it would be paramount that you have contingency clauses. You wouldn't just go dropping offers on any property because the inspection costs would add up, but then you're at least serious about the property, but you have an out if it's not a good one.
Yeah, they got burned good. I feel bad for them. I think they were able to get things fixed, but they had to eat the cost.
You found that most of the piers in the foundation were missing?! That's insane! Seems like something that should have been caught in the inspection. That sounds like quite the story. Hopefully you were able to make your money up later.