What you can do with a bad report depends on the exact wording of your condition, which your lawyer reviews as part of confirming title through Information Services Corporation. Most give you the right to terminate outright if you are not satisfied with the findings, while some require you to first request repairs or a price adjustment before you can walk.
If you removed the inspection condition to compete for the home, backing out afterward is much harder and can put your deposit at risk, since you gave up the contractual protection that a bad report would otherwise trigger.
Read your specific condition wording with your lawyer before you act on a report you do not like. Get your hand-reviewed valuation from Joel Dyck.