4"? What is in between the concrete and the sill plate then?

Looks like nothing? I’ll see if I can attach a picture

Here is what it looks like.

Looks like the actual sill rotted out, and that's the bottom plate to the wall framing. $$$$$$

Ah, any rough idea of how much that would cost to repair?

Catastrophic levitation in the offing.

An inspection won’t give you a solution, or a cost. It may possibly give you leverage with the homeowner for a discount in the price. But in this market? Maybe not.

To get a price, pay a GC who does foundation repair to come examine it. IF you are still interested in the house, and will have substantial savings that won’t go to the downpayment or closing costs. It will not be cheap is the only assurrance. 40K? 50K? 90K? It depends on how far the rot goes. But the house will need jacking up some to get a replacement sill in there. And that’s the easy part. If the rot has spread further, and more framing needs replacing?

Is the ground around the house sloped away from it? Or is it sloped towards it? What other water damage problems were found? Do they not have a current, kept up, termite vontract on the home? Because a termite guy crawling around would notice that. So would a plumber, or anyone vapor sealing things. So, that hints that they ignored a lot. Because that did not happen overnight. And you want to look twice at everything else. Neglected homes are money pits.

Thank you for your insight!

This looks like a lot of expense. Also a lot of neglect. You may want to think about looking for another house.

Pictures are inconclusive. Get someone in there that knows what they are doing, home inspectors aren't qualified to assess these issues. Post the wording on the report as I assume you can't get better pictures without pulling that insulation down.

As @ksc36 said, these photos are inconclusive. To me, it looks like a "joist" with a cleat nailed onto it. There is batt insulation above it, so that means there are floor joists either above this "joist," which might make it a "beam," or within smaller size joists adjacent to it. But there is something looking like wood color resting on the concrete behind it. I think I learned about gravity when potty training, so I'm pretty sure things can't levitate for too long without some consequences. What I do see though is a really old house probably chopped up and mangled, as many old houses are.