repeated relistings and huge price drop

[Steven Ekenstedt]

Do i need to be wary of houses that have been on the market for 2+ years and have dropped the asking price by 40+ % in that 2 year time period? Its been listed and taken off the market at least 3 times. It also shows that it was put on auction before it was put on the market. I assumed someone just bought it super cheap and thought they could do quick resell without any work on it because it needs quite a lot of work. Is this likely or am i way off? i realize that every instance is different, just looking for general ideas or things to look for.

steve