In NC if the water heater was performing it's intended function and not in need of immediate repair then it is not a repair item and should not be on the summary page. The size of the heater is not a factor in this case. Hot water at the faucet is all you need if the heater is not leaking.

I inspected a house a couple of years ago and when the folks moved in they only had about half a tank of hot water before it got cold. They had a home warranty so they call the warranty company. The service guy said that I had missed a malfunctioning heater so they would not replace it in warranty. I told them that I did a function test as prescribed by the NCHILB guidelines and not a volume test. They replaced the heater for the homeowner.