An inspector will just look if there are no major problems, he won't go as far as checking if there is insulation in the walls. It's a 50 years old house, it probably doesn't and isn't a flaw because that's what it was back then.
Just like the attic insulation, if it's not enough, that's not a flaw, that's how it was.
Your friend shouldn't DEMAND new features in an old house. If there's no ground, she can think about it, but she can't claim it's a flaw.
I have a 1964 home and it has copper wiring with ground, copper pipes, a decent fuse panel 100A that is plenty, and little insulation (been working on it for a while and it's showing).
Do you have a link to the listing? Im curious to see the model.
said by KrK:
An interesting thing about my house is that the drywall was hung with nails instead of screws and some of them have clearly "popped" up some over the years as the house settled.
It's funny you say this. In my basement reno project, I ripped out drywall that was installed after the house was build. Those were nailed in and easy to pop out (good thing I'd say). Then when I tackled the basement staircase, they were nailed in as well, but with rigged nails. Those were a PAIN to remove and those were original construction drywall panels.