If not, what evidence did you provide to the review committee ?

Make a formal request for their evidence and how they got it . 

If he’d like to provide evidence that my analysis is incorrect, I’d be happy to stand corrected.  

I believe that they'll have to provide evidence of the defect, the seller's knowledge of it, and prove that the buyer had financial losses because of it.

This seems to be pretty standard for the area.The bad:  The home inspection found evidence of knob & tube wiring, and there is basically 1 outlet per room with tenants running power strips and extension cords all over the place. 

But the better question is: what kind of evidence are you will to accept in order to change your view?

Many DIY dig-outs end up with seepage issues.Ceiling height and egress – Even though it’s not a legal unit now, make sure it meets or could meet Chicago’s 7' min height and emergency exit standards if you ever plan to finish it.Permits and documentation – Ask if any permits were pulled or if there’s evidence of inspection.

The IRS (and courts) prefers evidence created when the work actually happens, not a spreadsheet reconstructed months later.

You don't need more evidence.

What evidence do you have?