Here is our layman's interpretation of the home inspector's report: the house has a robustly healthy body, but it's balding and has stinky feet.
The home inspector said that the structure is in excellent shape; it was built really well, and the original footprint and floorplan have not been altered. However, since the house is 80 years old, it does have some problematic issues. The basement has had some flooding and needs waterproofing and mold mitigation, the furnace is 30 years old, and the roof is about 15 years old (though not leaking anywhere). The inspector gave us very rough estimates about how much it would cost to do the necessary work, and it was all less than we would have expected. They're three big jobs, but they're doable. So now we move into negotiations with the seller. We're hoping that the seller will take care of the flood damage and the furnace (our realtor thinks the current owner might have a home warranty, which would cover some of that); we'll ask about the roof, too, but we're willing to save up to do that ourselves if need be. We still really like the home, and we want to make it work, but we're holding it very lightly. Lord willing, we'll come to a good agreement with the seller and will still be able to make this home our own soon. Please pray with us to that end!