If I may add my .02.
While I am still learning about my Detroits and have sunk significant $ in maintenance and upgrades, I've learned a few things.
WHen started from dead cold, they will smoke at first if your block heaters are not on. This should clear up after a few minutes of warm-up. If it is cold (temperature), they will not like to start immediately. There is a cold-start procedure without block heaters.
Properly tuned, they all produce some soot. This should not be excessive. Since it gets everywhere and is hard to clean, you should be able to tell.
Last, black smoke, black exhaust water and soot are not necessarily "major" problems and a surveyor would be able to tell the difference. However, you may want to seek a price adjustment since nothing is inexpensive.