Expecting vs Inspecting on older home purchases

Putting a home under contract has some initial expense with earnest and option money. There is also a cost for your general (and possible subsequent specific) inspections after coming to agreement with your seller. Your expectations of the condition of that property will be a discussion point AFTER these general/specific inspections. At what point would you bail out to find another home? $500, $2000, $10,0000...
Here is the hypothetical; you are a buyer looking for a home to live in (not investor). And for this story we are NOT talking new/'to be built' but a downtown-central city house with some age on it. To make the offer you put down 1% earnest money and you have some additional money towards an "option period" (in Texas it is called 'termination option' section 23 of the paper work - a whole entry for this alone if you need more on 'termination option'). After securing the agreed to terms comes an inspection cost. Since your going to do the inspections on your older home purchase, at what price do you walk away over repairs or condition? There is not a "pass/fail" for inspections. This "pass/fail" is totally up to you the buyer. To be clear the general inspection is not the Appraisal with a capital "A"). The inspection results are relative to what you were expecting or not expecting . For the most part, the general inspector writes up a report relative to 'if the house was built today' highlighting code violations. Were you buying a turn key house which was marketed as a perfectly remodeled home? Did you expect some issues at the price you got it for? Does this house meet everything on your list plus more (an exceptional find for your goals)? Only you know the answer as the buyer and this is great information to share with your spouse/Realtor/self as part of the cost in making the offer.
If you decide to terminate the contract due to your initial inspections your 1% earnest money is likely refunded (reason for "the option money" I mentioned) and your only "out" about $100 to $500 depending on your terms for this "option money". The general inspection cost is about $300 to $400 with some variables we won't go into for now. Since a reasonable seller should be up for reasonable repairs on their dime, at what point is it worth walking away from your ideal home (which is why you put the offer down in the first place)?